Fed Chairman Powell recently revealed a shocking piece of news for the financial markets: within the Federal Open Market Committee (FOMC), two members have clearly expressed support for a rate cut. This information's release immediately triggered a strong reaction in global financial markets.

This development highlights the divisions within the Fed's decision-making body regarding the assessment of the current economic situation. Members supporting a rate cut may be considering the following: although the U.S. economy still appears to be growing, a closer look reveals a weakening momentum in the job market and a more cautious willingness among businesses to expand. They believe that cutting interest rates to stimulate economic vitality could create a more favorable environment for business financing, thereby driving job growth and reigniting economic dynamism.

However, Powell remains cautious about this. He stated in public that it is normal to have differing opinions internally and emphasized that the meeting achieved good results. This statement reflects the complex situation the Fed faces when formulating monetary policy. Decision-makers need to weigh multiple factors such as inflation rates, employment data, and the global economic situation. Especially in the current context where inflationary pressures still exist, hasty interest rate cuts could lead to unexpected negative impacts.

The internal divergence within the Fed actually reflects the delicate stage of the current U.S. economy. On one hand, the momentum of economic growth is still continuing; on the other hand, various economic indicators show that the growth momentum may be weakening. In this context, the direction of monetary policy will directly affect the future trajectory of the U.S. economy and even the global economy.

With the news breaking, financial market participants are closely monitoring the Fed's next moves. Regardless of the final decision, this debate surrounding monetary policy will undoubtedly have a profound impact on global financial markets.