Internal debate intensifies at the Federal Reserve as market expectations for rate cuts increase significantly, according to a report by CICC. This comes amid pressure from U.S. President Trump and Treasury Secretary Mnuchin, who both urge for substantial reductions. However, the report argues against drastic action, citing concerns over the risk of stagflation-like conditions and highlighting current limitations on implementing significant rate cuts. Instead, it suggests prioritizing stabilizing inflation expectations over pursuing short-term growth or responding to political pressure. Consequently, the report predicts that the Fed will adopt a cautious approach on rate cuts and avoid aggressive easing measures.