As the economic situation continues to change, there has been a clear divergence of opinions within the Fed regarding the direction of interest rate policy, showing a trend of polarization. This divergence reflects the different perspectives of decision-makers when facing a complex economic environment.

The first faction advocates for aggressive interest rate cuts. Among them, Commissioner Milan expressed support for a one-time cut of 50 basis points and believes that two more rate cuts within the year are feasible. They argue that the current economic situation requires more decisive policy action.

The majority opinion of the second faction's representative tends to favor a moderate interest rate cut. Fed Chair Powell emphasized that market liquidity has tightened, suggesting that the balance sheet reduction may soon come to an end. He has taken a relatively cautious stance between balancing employment and inflation targets. Committee members such as Waller, Bowman, Collins, and Williams all support gradually easing monetary policy to support the labor market and economic growth.

The third faction holds a relatively hawkish stance. Committee members such as Jefferson, Barr, Moussailem, Schmidt, and Goolsbee are cautious about lowering interest rates. They emphasize that inflation risks still exist and warn against premature or excessive rate cuts to prevent a rebound in inflation.

Despite the differences, overall, the majority of governors led by Powell tend to favor a moderate interest rate cut strategy. This suggests that the Fed may be considering entering a "moderate interest rate cut cycle" to address the current economic challenges.

This tripolar situation reflects the complex landscape faced by the Fed in formulating monetary policy. Decision-makers need to find a balance between stimulating economic growth, maintaining employment market stability, and controlling inflation. Future economic data trends may become key factors influencing the Fed's final decisions.

The Fed's policy direction not only relates to the US economy but will also have a significant impact on global financial markets. Investors and policymakers will closely monitor the Fed's subsequent actions to adjust their investment strategies and economic policies.