Recently, the Fed's interest rate decision meeting has attracted widespread follow. Although the Fed chairman temporarily resisted pressure from the political sphere and decided to keep the interest rate unchanged, the two dissenting votes that emerged during the meeting broke a long-standing tradition.

This situation has been unprecedented in the past thirty years. One of the dissenting voices is Waller, whose position has gradually aligned with certain political figures. Another is Vice Chair Bowman, who was directly nominated by the current government and has also openly expressed differing opinions.

It is worth noting that since 1993, the Fed Board has only seen 5 dissenting votes, consistently guided by a high degree of consensus. This unexpected divergence indicates that a clear division has indeed begun to emerge within the Fed.

There is a faction advocating for an immediate interest rate cut, concerned that employment data may continue to deteriorate; another faction takes a wait-and-see approach, hoping to wait for more data to confirm whether the impact of tariffs is just a false alarm; while another faction is more assertive, leaning towards maintaining the current policy until the economy truly shows signs of weakness before making adjustments.

In fact, the Fed is also aware that future interest rate cuts are an inevitable trend. The key lies in how to cut rates, when to cut rates, and for what reasons to cut rates.

This involves not only political considerations but also the control of rhythm. The Fed needs to have sufficient reasons to support its decisions, yet it cannot appear too obvious, and it is best to avoid taking full responsibility.

After all, in this election year, no one wants to be nailed to the pillar of historical shame due to erroneous decisions. Especially the chair of the Fed, who certainly does not want his decisions to become a stepping stone for any political force's resurgence.

The internal divisions within the Fed this time reflect the complexity of the current economic situation and the difficulty of decision-making. Finding a balance between maintaining economic stability and responding to political pressure will be a continuing challenge the Fed faces in the future.