Powell Resists Pressure Amid Internal Fed Tensions

Federal Reserve Chair Jerome Powell has underscored the precarious balance facing U.S. monetary policymakers as inflation lingers and labor market signals waver. "There is no risk-free path," Powell declared during a speech in Rhode Island, acknowledging the central bank's dual mandate of price stability and maximum employment now presents near-irreconcilable tensions.

The Fed's recent 25-basis-point rate cut exposes deepening divisions within the committee. Governor Stephen Miran has emerged as a vocal advocate for more aggressive easing, arguing current policy restricts job growth. Meanwhile, inflation hawks maintain their vigilance with Core CPI still hovering above the 2% target.

This policy deadlock arrives as multiple global central banks accelerate their easing cycles, creating divergence that could ripple through risk assets. cryptocurrency markets traditionally sensitive to liquidity conditions may face heightened volatility as traders parse every nuance of Fed communications for clues about the terminal rate.