There was broad support, or at least acquiescence, on the Federal Open Market Committee for last week’s decision to cut policy rates by 0.25 per cent. Nevertheless, policymakers are clearly divided on the general direction of rates from now on. In his press conference, Jay Powell, Federal Reserve chairman, euphemistically remarked that there were “disparate perspectives” on the committee.

There seems to be a small plurality for further “insurance cuts”, probably including the leadership, but there is also mounting discontent about the extent and duration of the easing cycle that is now under way.

The split in the FOMC between hawks and doves is no doubt driven by many factors, but one of the main underlying differences concerns the amount of inflation risk that participants are willing to take in the late stage of the economic cycle.