Fed’s Miran Demands Bold Move: 50 Bps Rate Slash in December to Shake Markets
Markets brace for impact as Fed official pushes aggressive stimulus.
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The Hawkish Pivot Nobody Saw Coming
Miran's call for a half-point cut throws gasoline on the inflation debate. Traders scramble to price in the surprise move—because clearly, the Fed's 'data-dependent' stance depends on which Wall Street banker just had lunch with the chair.
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December Showdown: Doves vs. Reality
With CPI still running hot, this proposal reeks of political theater. Either Miran knows something the rest of us don't, or the Fed's preparing to monetize the next election cycle. Buckle up for volatility.
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“But failing new information that’s made me update my forecasts, looking out in time, yeah, I WOULD think that 50 is appropriate, as I have in the past, but at a minimum 25,” Miran said in an interview with CNBC on Monday.
Miran Favors Economic Projections Over Current Data
Miran pointed to better-than-expected inflation data and weakness in the labor market as the rationale behind his opinion. In addition, he believes that current economic data are “backward looking” and that the Fed should make monetary policy decisions based on economic projections 12 to 18 months into the future.
Still, a 25 bps cut next month is the likely scenario with 60.9% odds, according to CME’s FedWatch tool. The odds of an unchanged rate sit at 39.1%, while the odds of a 50 bps cut are at 0%.
