Fed Governor Miran: December Rate Cut Likely, but Not Everyone at the Fed Agrees

The U.S. central bank is once again divided. Newly appointed Federal Reserve Governor Stephen Miran has hinted that a December interest rate cut would be a “reasonable and natural move,” provided there are no unexpected economic surprises. His remarks, however, have sparked mixed reactions within the Federal Reserve, where several policymakers are calling for caution.

Fed Signals Another Round of Easing Miran shared his view during an interview on the Monetary Matters podcast, saying, “If nothing major changes, a December rate cut makes sense.” He noted that current data shows a stable labor market and lower-than-expected inflation, which in his view justifies a gradual continuation of monetary easing. The Fed last cut rates by 25 basis points to a target range of 3.75–4% at the end of October, following months of elevated inflation that has now started to cool slightly. Miran, however, had argued for a larger 50-basis-point cut, underscoring his consistently dovish stance.

December Decision Seen as Crucial According to Miran, the Fed should avoid aggressive cuts and instead maintain a “balanced and neutral stance” that supports growth without overheating the economy.

“It’s not about pushing the economy forward but keeping it in equilibrium,” he said. Miran emphasized that the Fed does not plan a 75-basis-point reduction or any emergency measures, since the labor market’s slowdown appears gradual, not accelerating. He also pointed out that the lack of fresh economic data — caused by the ongoing U.S. government shutdown — complicates the Fed’s decision-making process. Still, he believes that unless major surprises emerge, a December cut remains the most logical path forward.

Divisions Within the Fed Not everyone at the Fed shares Miran’s optimism. Several senior officials have voiced concerns that cutting rates too soon could reignite inflationary pressures. 🔹 Austan Goolsbee, President of the Chicago Fed, said a December cut “is not guaranteed.”

🔹 Lisa Cook, Fed Governor, and Mary Daly, President of the San Francisco Fed, have both expressed similarly cautious views.

🔹 Jeff Schmid of the Kansas City Fed, meanwhile, supports keeping rates unchanged. Analysts note that Miran now finds himself in a unique position — advocating rate cuts while much of the Fed leans toward patience. Miran himself acknowledged the uncertainty: “Anything can happen between now and December — new data, surprises, even unexpected events. But if our outlook remains stable, continuing our current course is still the most reasonable choice.”

Summary The December FOMC meeting is shaping up to be one of the most pivotal moments of 2025. While Miran pushes for another rate cut, other policymakers warn against moving too fast. The decision will serve as a key signal to global markets — showing whether the Fed will pursue further monetary easing or pause amid rising uncertainty.

#Fed , #interestrates , #Inflation , #economy , #usa

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“