Fed 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.

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.

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.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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