This week's Fed meeting is likely to be the most divisive in three decades, says Deutsche Bank

Jerome Powell, chairman of the US Federal Reserve (Credit: Al Drago/Bloomberg - Getty Images)

• Wall Street is pricing in a rate cut at this week’s Fed meeting, but Deutsche Bank’s Jim Reid warns dissent could be the sharpest in decades, with some governors pushing for a deeper cut and others for no change. The split underscores tensions facing Jay Powell as weak jobs data bolsters dovish voices, even as some policymakers argue financial conditions remain far from restrictive.

Wall Street is entirely convinced a cut to the base rate is coming this week. Relatively mild inflation and weakening jobs data has resulted in bond investors pricing in a 0.0% chance the Federal Open Market Committee (FOMC) holds rates steady when it meets tomorrow and Wednesday.