Overview
- In a CNBC interview, Stephen Miran said a 50 basis point cut in December is appropriate and that 25 basis points should be the minimum, while noting his view could change with new data.
- Miran dissented at the September and October meetings in favor of larger reductions as the committee delivered two quarter-point cuts, and Kansas City Fed President Jeffrey Schmid opposed the October move.
- CME FedWatch places the likelihood of a 25 basis point cut in December around 62%–63%, with the remaining odds leaning toward holding rates steady.
- St. Louis Fed President Alberto Musalem urged caution given inflation closer to 3% and less restrictive financial conditions, San Francisco Fed President Mary Daly called for an open mind, and Governor Chris Waller supports continuing with quarter-point steps.
- Officials are operating without key government releases due to a shutdown, while Miran cites cooling inflation, a softer labor market, and strains in housing and private credit to justify faster easing.