U.S. Debt: Modest Advancements Reported
The upcoming Federal Reserve (Fed) meeting is shaping up to be a significant event, with several influential changes taking place within the institution.
On one hand, the Senate has confirmed the appointment of Stephen Moore, a close ally of US President Donald Trump, as a Fed governor. This appointment adds another voice to the ongoing power struggle between the President and the Fed, a tension that has been brewing for some time.
On the other hand, the appeals court has blocked the dismissal of Fed Governor Lisa Cook. Her position on the board is now secure, preventing any immediate changes to the Fed's composition.
The better-than-expected US retail sales and industrial production in August did not have a significant impact on the market. However, Tobias Basse, an analyst at Nord/LB, commented that the consumer remains a key pillar of the US economy.
Economists predominantly expect the US Federal Reserve to cut interest rates by 0.25 percentage points on Wednesday. However, the Fed meeting could be particularly contentious, according to experts, given the ongoing power struggle and the recent appointments.
Meanwhile, the yield on 10-year German government bonds stood at 4.03 percent. The 10-year note futures contract (T-Note-Future) rose by 0.11 percent to 113.47 points.
As the Fed meeting approaches, the U.S. Senate will also consider the confirmation of Christopher Waller as a Federal Reserve member on Monday, October 7. Waller's potential appointment reflects the increasing polarization in Federal Reserve nominations, as indicated by narrow Senate confirmation votes for similar nominees.
The ongoing power struggle between President Trump and the Fed, the recent appointments, and the upcoming monetary policy decisions promise to make the Fed meeting a noteworthy event.
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