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Fed Rift Deepens as Miran Urges 50‑bp December Cut While Economists Lean to 25‑bp

Caution from Susan Collins and other policymakers reflects concern over inflation that remains above target.

Atlanta Fed President Raphael Bostic prepares for a speech at the National Association of Business Economics' annual policy meeting in Washington, U.S. March 21, 2022. REUTERS/ Ann Saphir
Federal Reserve Bank of Boston President Susan Collins stands behind the Jackson Lake Lodge in Jackson Hole, where the Kansas City Fed holds its annual economic symposium, in Wyoming, U.S., August 24, 2023. REUTERS/Ann Saphir
The Federal Reserve building in Washington, D.C., U.S., September 16, 2025. REUTERS/Aaron Schwartz/File Photo/File Photo
Federal Reserve Chairman Jerome Powell speaks at a news conference after the Federal Open Market Committee meeting Wednesday, Oct. 29, 2025, at the Federal Reserve Board Building in Washington. (AP Photo/Manuel Balce Ceneta)

Overview

  • Reuters’ latest poll shows 80% of economists expect a quarter‑point cut on Dec. 10, with the rest seeing no change.
  • Fed Governor Stephen Miran reiterated that policy is too restrictive and called a 50‑basis‑point reduction appropriate, saying 25 bps should be the minimum.
  • Boston Fed President Susan Collins said additional easing carries a high bar and signaled it may be appropriate to hold rates for some time.
  • St. Louis Fed’s Alberto Musalem and Vice Chair Philip Jefferson urged caution as officials navigate a data gap caused by the prolonged government shutdown.
  • Markets still price a December cut as more likely than not, with CME FedWatch odds around the low‑to‑mid 60% range and slipping in recent days.