The Federal Reserve (Fed) began a two -day policy meeting on Tuesday with an unusual atmosphere, when a new governor appointed Trump's administration Stephen Miran for the first time.
Meanwhile, Lisa Cook is facing conflict when President Donald Trump is trying to deprive his position.
Trump confirmed that he signed a document that allowed Miran to go on vacation from the White House Economic Advisory Council to join the Governor's Board.
Meanwhile, Trump's attempt to sack Cook is still delayed after the Federal Appeal Court blocked the dismissal.
The Fed is expected to lower the benchmark interest rate by 25 basic points to a range of 4.00% to 4.25%. Policy statements and quarterly projections will be announced on Thursday at 2am Malaysia time, followed by a press conference Chairman Jerome Powell.
So far, the market is still quiet even though the latest political drama has raised a big question about Fed's freedom.
The latest economic data also triggered a dilemma as import prices rose beyond expectations, consumer spending remained strong and industrial products jumped.
At the same time relieves concerns of recession and unemployment.
The new Fed projection will reveal how 19 policy makers evaluate inflationary risk, interest rate direction and job prospects in the next few months.
Investors are now expecting three times this year's rate cuts, compared to just twice in the Fed projection in June.
Miran's position will be the focus of whether he is in line with Trump's views that he wants low rates and bright or moderate economic prospects as his counterparts on the Fed.
