Overview
- Fed Governor Stephen Miran reiterated in a CNBC interview that a 50 basis-point reduction is warranted in December, calling a 25 point move the minimum appropriate step.
- Miran dissented at the September and October meetings in favor of larger cuts, while the FOMC delivered quarter-point reductions that brought the policy rate to 3.75%-4.00%.
- St. Louis Fed President Alberto Musalem urged caution, saying policy has limited room to ease with inflation closer to 3% than the 2% goal and financial conditions still elevated.
- San Francisco Fed President Mary Daly signaled greater openness to a cut given muted wage growth and cooling labor demand, even as she keeps focus on inflation risks.
- Futures imply roughly a 63% probability of a quarter-point cut in December, as Chair Jerome Powell refrains from committing to another move and officials navigate data gaps during the ongoing government shutdown.