WWJD Moment: Powell's power unprecedentedly concentrated, allies paving the way to create a window for rate cuts

BlockBeats latest observation indicates that a power shift is underway within the Federal Reserve. In a comment on November 25th, informed sources pointed out that the upcoming Federal Reserve meeting could become a “WWJD moment”—meaning everything depends on what Jerome Powell decides.

Subtle Changes in the Power Dynamics

The underlying message behind this statement warrants attention: the majority of Federal Open Market Committee members are already prepared for a rate cut. In market terms, allies have cleared all obstacles, and as soon as Powell gives the nod, a rate cut could become a reality. This suggests that a policy consensus has already formed within the Fed, awaiting the top leadership’s final decision.

Rate Cut Window Opens, but Outlook Remains Uncertain

Interestingly, this potential rate cut often comes with an implicit signal: Powell may also release a more cautious outlook—implying that, given the current economic situation, there is limited room for further rate cuts. In other words, it is unlikely to mark the start of a rate-cutting cycle, but rather a limited policy adjustment.

This “single rate cut + cautious forward guidance” approach provides the market with a signal of policy flexibility while leaving room for the Fed to adjust as needed. For market participants closely watching the Fed’s moves, what truly matters are the implications beyond the words.