The Fed has cut rates by 75 basis points this year, although Fed Governor Stephen Miran has cautioned that the U.S. risks a recession without further cuts in 2026.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge-fund level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
“If we don’t adjust policy down, then I think that we do run risks,” Miran said on Monday in an interview with Bloomberg TV, pointing to the unemployment rate rising to a 4-year high of 4.6% in November as a major reason to cut rates.
Fed Officials Split on Rate Outlook
Miran has gone against the crowd at the last few Federal Open Market Committee (FOMC) meetings, dissenting in favor of a 50 bps reduction instead of 25 bps. He added that he isn’t sure whether he will support a 50 or 25 bps cut at the next FOMC in January.
Inflation is a key concern among Fed members and has resulted in a central bank divided on the rate path outlook. The market is pricing in 80.1% odds of the Fed holding rates steady and 19.9% odds of a 25 bps cut next month, according to CME’s FedWatch tool.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.