Overview
- The Federal Open Market Committee lowered the federal funds rate by 25 basis points to 3.75%–4.00%, with Stephen Miran dissenting for a larger cut and Jeffrey Schmid preferring no change.
- Lisa Cook, in her first public remarks since President Trump tried to remove her, backed last week’s cut, said December is a live meeting, and remains in office under a court injunction with Supreme Court arguments set for January.
- Cook warned tariff pass-through to consumer prices is not complete and said inflation is likely to stay elevated over the next year, adding she would act forcefully if price pressures persist.
- Chicago Fed President Austan Goolsbee said his threshold for another cut is higher than at recent meetings, citing inflation still above target and reduced clarity due to the shutdown’s halt of key data.
- San Francisco Fed President Mary Daly said she supported the latest cut and will keep an open mind for December, noting a softer but not collapsing labor market and the Fed’s increased reliance on private and survey data.