FOMC Delivers Expected Quarter-Point Cut; Miran Dissents 

The Federal Reserve lowered its benchmark federal funds target range by a quarter point on Wednesday to 4.00%–4.25%, a widely anticipated move after Chair Jerome Powell signaled last month a shift toward prioritizing employment risks over lingering inflation pressures. 

Newly appointed Fed Governor Stephen Miran cast the lone dissent, favoring a deeper half-point rate cut instead of the quarter-point move adopted by the committee. 

In updated projections released with the decision, most officials anticipate an additional half-point of easing this year—likely through quarter-point cuts at each of the two remaining meetings. That would lower the policy rate to a 3.50%–3.75% range, below the levels signaled in June. 

Powell continues to face a delicate balance between the Fed’s dual mandate of maximum employment and price stability. Inflation has shown signs of re-acceleration, though Powell has argued that tariff-driven price increases will prove temporary. At the same time, a cooling labor market suggests policy choices will become more challenging as economic growth slows.