Allison Fedirka, director of analysis at Geopolitical Futures: “Lula now faces a completely different Brazil as compared to his previous terms. Before, Lula had a booming economy, a glut of soy dollars and he oversaw the Selic rate drop by 15 points to just over 10 percent. Now, he faces a declining economy with strong spending limits, high inflation and slow growth. Furthermore, this is his first time in office with an autonomous central bank. Lula believes the higher interest rates discourage investment; the central bank has the benchmark rate at 13.75 percent to tame inflation. Lula desperately wants to curb rising prices because it will help him maintain popular support and spur economic growth (in part through investments and borrowing). Galípolo and Aquino dos Santos were deliberately selected with the understanding they will support Lula’s views for lower interest rates and greater state participation in strategic areas. While they can weigh in directly on deliberations, they will not necessarily be able to…”