Fed Governor Advocates for Aggressive Rate Cut Amid Economic Uncertainty
Federal Reserve Governor Stephen Miran has doubled down on his call for a 50 basis point rate cut at December's FOMC meeting, marking his third consecutive dissent in favor of more aggressive monetary easing. The lone hawk-turned-dove cited improving inflation metrics and labor market softness as justification, while emphasizing the need for forward-looking policy decisions based on 12-18 month projections rather than trailing indicators.
Market pricing tells a different story. CME's FedWatch tool assigns just 0% probability to Miran's proposed half-point cut, with a 25 basis point reduction holding 60.9% odds and 39.1% chance of unchanged policy. The disconnect highlights growing tension between data-dependent committee members and those prioritizing preemptive action against potential economic slowdowns.
