Overview
- The Dec. 9–10 FOMC lowered the federal funds rate by 25 basis points to 3.50%–3.75% in a 9–3 vote, with two presidents preferring no cut and Governor Stephen Miran seeking a half‑point move.
- Minutes say most participants would support additional reductions if inflation keeps falling, while several favored keeping rates unchanged for some time and described the December decision as finely balanced.
- Policymakers flagged missing and imputed figures from the 43‑day government shutdown, with recent releases showing CPI at 2.7% and unemployment at 4.6% alongside 4.3% third‑quarter GDP growth.
- The Fed agreed to restart purchases of short‑term Treasury bills to maintain ample reserves and ease pressures in money markets.
- Markets now largely expect no move at the Jan. 27–28 meeting, as the committee faces a 2026 voting rotation to Beth Hammack, Anna Paulson, Lorie Logan and Neel Kashkari and a forthcoming White House nomination for Fed chair.