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Illustration: Aïda Amer/Axios

The Fed is doing its best to prop up the U.S. economy in the face of possible economic turbulence, but it's beginning to look like a rudderless ship and it's fast losing the confidence of investors.

Driving the news: The Fed's rate-setting committee cut U.S. interest rates 25 basis points as expected on Wednesday, but did so with 3 dissenting votes for the first time since 2016.

  • The central bank's projections for future policy showed even more discord — 7 members of the 17-member committee said they expect to cut rates again this year, while 5 expect rates to remain at their current level and 5 see rates rising again later in the year.
  • It was a "forceful pushback" against the rate cut, Goldman Sachs economists Jan Hatzius and David Mericle said in a note to clients, and could portend a tougher road for policy action in the future.
  • "[T]he internal inconsistency ... is a reflection of the current divisions within the Fed," said Joseph Brusuelas, chief economist at RSM.

Between the lines: The Fed's more esoteric announcements were even more disappointing and confounding, investors said.

  • The rate cut — typically a sign of economic turmoil — was accompanied by expectations for higher GDP growth this year in the summary of economic projections.
  • Measures intended to stabilize the repo market by lowering key reserve rates were almost universally criticized by economists and money managers, many of whom called it a "Band-Aid" that failed to address the festering problems in the structurally important market.
  • To wit, the New York Fed announced it would need to inject up to $75 billion into the repo market today after losing control of its own interest rate and needing $128 billion of liquidity injections Tuesday and Wednesday.

The big picture: President Trump's trade war, constant criticism and demands for low interest rates have put the Fed in a bind, but Fed chair Jerome Powell and company are not helping their cause either.

  • This is the latest example of the Fed surrendering global leadership on monetary policy.

The last word: "The committee missed an opportunity for a bolder stance that might have provided greater insurance against international risks to the economy," Rick Rieder, CIO of global fixed income at BlackRock, said in a note.

Both the Fed and the European Central Bank lowered interest rates at their policy meetings this month but 3 other major central banks will announce decisions today with no cuts expected.

  • The Bank of Japan made no changes to interest rates at its meeting overnight, and no changes are expected from the Swiss National Bank or the Bank of England at their respective meetings, despite the general easing trend among central banks around the globe.

What they're saying: "Central bank meetings will remain in focus for the next 24 hours with three additional monetary policy announcements on the calendar," Kathy Lien, managing director of FX strategy at BK Asset Management, said in a note to clients.

  • "Recent stability in the financial markets will relieve some of the pressure on policymakers."

Go deeper

China's crypto throwdown

Illustration: Sarah Grillo/Axios

China's latest move to ban cryptocurrency shows how tough it will be for the technology to deliver on its backers' vision of disruptive, decentralized change.

The big picture: Control of the currency is a foundation of sovereignty, and governments don't plan on losing that control even as money inevitably turns digital.

D.C. homicides fueled by rundown properties

Illustration: Sarah Grillo/Axios

Angela Washington was the last line of defense for residents at the Oak Hill Apartments in Southeast besieged by gun violence. Then, on the evening of Sept. 21, the 41-year-old special police officer was shot to death.

Why it matters: The District’s spike in gun violence is being linked partly to rundown properties that city officials and residents say have become magnets for criminal activity.

Biden's reengineer-America moment

Illustration: Sarah Grillo/Axios

The Senate's bipartisan $1.2 trillion infrastructure bill and President Biden's $3.5 trillion spending package could live or die this week — and take Democrats' fortunes with them. But all the minute-by-minute political drama obscures how much America could change if even a fraction of it passes.

The big picture: Anything short of total failure could have a transformative impact on day-to-day life — from how we move around to our access to the internet, paid family leave and child care, health care and college.