Story perspectives

Fed's Rate Cuts May Not Avert Recession Risks

12/23/2025

Summary

Story summary

Federal Reserve Governor Stephen Miran says the Fed's rate cuts may not prevent recession risks.
He cites inflation data anomalies tied to the government shutdown and calls for continued reductions.
Miran says he previously backed larger cuts, but the case for 50 basis points has diminished.
He may remain on the Fed Board past January 31 if no successor is confirmed, and Fed has cut rates three times since September.

History

Historical Context

In response to the 2008 financial crisis, the Federal Reserve, led by Chairman Ben Bernanke, slashed interest rates from 5.25% to near zero to stimulate the economy amid rising unemployment and declining consumer confidence. This aggressive monetary policy, including the expansion of the Fed's balance sheet, aimed to stabilize financial markets and has ongoing implications as current officials, like Governor Stephen Miran, express concerns about recession risks.

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Story summary

Federal Reserve Governor Stephen Miran says the Fed's rate cuts may not prevent recession risks.
He cites inflation data anomalies tied to the government shutdown and calls for continued reductions.
Miran says he previously backed larger cuts, but the case for 50 basis points has diminished.
He may remain on the Fed Board past January 31 if no successor is confirmed, and Fed has cut rates three times since September.

1 / 2