As expected the FOMC lowered the Funds rate by 0.25% and there were 3 dissents. Stephen Miran wanted a cut of 0.50%, and two district Presidents didn’t think a cut was warranted. Austan Goolsbee (Chicago) joined Jeffrey Schmid (Kansas City) who had dissented at the October 29 meeting (I incorrectly said Alberto Musalem St. Louis had dissented). I also thought that other FOMC members might register their opposition to a cut in the Dot Plot. The December 2025 Dot Plot shows that 6 members thought the Funds rate should have been held at 3.875%. By registering their view in the Dot Plot,...
