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Fed Split Sharpens Before December Meeting as Miran Urges Bigger Cut

A data blackout has forced policymakers to rely on private indicators ahead of the December 9–10 decision.

Overview

  • Fed Governor Stephen Miran reiterated his preference for a 50 basis point cut in December and said a quarter-point move should be the minimum.
  • He dissented at the September and October meetings after the committee opted for 25 basis point reductions.
  • Centrists and hawks, including St. Louis Fed President Alberto Musalem, warned that inflation near 3% and loose financial conditions argue for caution, while San Francisco’s Mary Daly urged an open mind.
  • Futures pricing still assigns roughly a 60%–67% chance of another cut in December, though odds have drifted lower in recent days.
  • With official releases delayed by the shutdown, officials are weighing private gauges and sector strains in housing and private credit as they assess next steps.