”The dots showed that today’s cut was still quite contentious. Six members put in no cut for this meeting (i.e., end of 2025), Miran putting in the two cuts, and the remaining twelve were in favour of today’s cut. However, only four reserve banks put in a request for a cut in the discount rate, meaning eight of them didn’t, including Chicago and Kansas City, the regions of the two dissenters. Not requesting the discount rate cut is a decision by the regional Fed boards, not the regional presidents, but still, it’s suggestive of more push-back behind the scenes. The range of dots for next year is enormous, between an upper bound of 2.25 and 4.00.”
Morten W. Langer
