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Fed Officials Split on 2026 Rate Path, With Cautious Pause Opposed by Miran’s Call for 100+ bp Cuts

With policy near neutral, leaders want clearer readings after shutdown-hit data.

Overview

  • Philadelphia Fed President Anna Paulson signaled a likely pause, saying any additional easing would be modest and contingent on later-year data after 2025’s three cuts left rates at 3.50%–3.75%.
  • Minneapolis Fed President Neel Kashkari said policy is close to neutral, cautioned that inflation remains too high, and warned the unemployment rate could pop higher as more data are assessed.
  • Richmond Fed President Tom Barkin said rates are within the range of neutral and future moves will require finely tuned judgments balancing inflation and employment, noting data gaps from the shutdown.
  • Fed Governor Stephen Miran argued policy is clearly restrictive and said well over 100 basis points of cuts are justified in 2026, with his term set to end on Jan. 31.
  • Political pressure continues as President Trump pushes for faster easing and plans to name a successor to Chair Jerome Powell this month.