On the morning of the 16th, Beijing time, Milan, a candidate for the Federal Reserve governor nominated by Trump, secured enough votes in the U.S. Senate to confirm his appointment. Milan's nomination as a Federal Reserve governor was confirmed by the Senate in time to participate in this week's interest rate meeting.

Previously, the U.S. Senate was set to vote to confirm Milan, the chairman of the White House Council of Economic Advisers, to join the Federal Reserve. Milan will retain his White House position but will take unpaid leave during his time at the Federal Reserve. Now that Milan's nomination has been approved, he will join the Federal Reserve's monetary policy committee and participate in subsequent votes on interest rate decisions.

This Thursday (September 18), the Federal Reserve's FOMC will announce its interest rate decision and summary of economic projections. Federal Reserve Chairman Powell will hold a press conference on monetary policy. According to CME's "FedWatch Tool," the probability of a 25-basis-point rate cut by the Federal Reserve this week is 95.9%, while the probability of a 50-basis-point cut is 4.1%. The probability of a cumulative 25-basis-point cut by October is 23.1%, a cumulative 50-basis-point cut is 73.8%, and a cumulative 75-basis-point cut is 3.1%.

Additionally, former St. Louis Fed President Bullard said on Monday that he had discussions with U.S. Treasury Secretary Besant last week about taking up the position of Federal Reserve Chairman. He expressed strong interest in the role if conditions are suitable. Bullard currently serves as the dean of Purdue University's Mitch Daniels School of Business and led the St. Louis Fed from 2008 to 2023.

Bullard stated, "If we are prepared for success, I am willing to take on this job... Success means defending the U.S. dollar's status as a reserve currency, maintaining low and stable inflation, and protecting the Federal Reserve's independence." Bullard said he expects the FOMC to cut rates by 25 basis points and signal further easing, believing it is reasonable for the market to anticipate a cumulative 75-basis-point cut by the end of the year. Bullard agreed with the temporary tariff-inflation theory and expressed support for Federal Reserve Governor Cook, who is embroiled in a dismissal controversy.

On Monday, U.S. President Trump posted on Truth Social, stating that Federal Reserve Chairman Jerome Powell must cut interest rates now, "and by a larger margin than he envisions."

David Kelly, chief global strategist at J.P. Morgan Asset Management, said that while the market widely expects the Federal Reserve to cut rates this week, if the move is perceived as being driven by political pressure and inconsistent with the Fed's outlook on the U.S. economy, it would increase risks for stocks, bonds, and the dollar. Kelly wrote in a report that Wall Street bond and stock investors have recently cheered expectations that the Fed will resume rate cuts after a nine-month pause. However, after the recent market rally, investors should adopt a cautious stance and seek diversified allocations.