Market history · Central banks ·
The Fed cuts for a third time, with three dissents
The Federal Reserve resumed cutting in September 2025, lowering its target range to 4.00–4.25%, and followed with further quarter-point cuts in October and on 10 December 2025, when it set the range at 3.50–3.75%.
The December decision passed 9–3. Stephen Miran wanted a half-point cut, while Austan Goolsbee and Jeffrey Schmid wanted no change. The Committee also said that reserve balances had declined to ample levels and that it would buy shorter-term Treasury securities as needed to keep reserves ample.
A split of that kind is a sign that the path ahead is genuinely uncertain. The range set that day was the one the Fed kept through July 2026.
The takeaway
When policymakers disagree in both directions, markets should expect rate forecasts to change.
Sources
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