Three questions about the Fed (interests rates, balance sheet, Powell)

Pulled between opposing forces, some pushing for a significant economic slowdown while others are pushing for rising prices, the Fed is unsure which side to take. The distribution of the FOMC members on the direction of policy rates has become almost bimodal (which is unprecedented). One camp is opposed to any rate cuts in 2025, while the other is ready to resume easing. The debate will not be settled before the end of the summer at best, hoping that by then there will be greater clarity on companies' pricing power and the labour market situation. Rather than constantly pressuring Powell for a rate cut, Donald Trump would be more likely to secure it if he stabilised trade tariffs at a low level.