Institution: The Federal Reserve will remain inactive this week, with two major dovish factions expected to hold opposing views

According to a report by Golden Finance, Prudential's Chief US Economist, Ulu Perci, stated that the Federal Reserve is expected to keep interest rates unchanged at 4.25% -4.5% this week, but Waller and Baumann may object. This may exacerbate speculation that once more officials appointed by Trump join the Federal Reserve Board from the first quarter of 2026, the rate of interest rate decline will be even faster. The dovish Waller and Baumann may argue that monetary policy is restrictive because inflation related to tariffs is being offset by other factors, and they may lower interest rates on the grounds that the neutral rate is close to 3%. Powell is expected to try to guide the FOMC to wait as long as possible for the next rate cut, with a greater likelihood of a rate cut in October than in September.