Source: Independent Institute
by Alexander William Salter
“Earlier this month, the Federal Reserve cut its interest-rate target by 25 basis points, or 0.25 percentage points, bringing the range down to 3.5–3.75 percent. This was no routine decision. It passed by a contentious 9–3 vote: two Federal Open Market Committee members wanted to hold the target rate steady, while Fed Governor Stephen Miran favored a larger 50-basis-point cut. Chairman Jerome Powell called it a ‘close call.’ What justified this controversial decision? According to the Fed’s official statement, policymakers judged that ‘downside risks to employment rose in recent months.’ The unemployment rate had ‘edged up’ to 4.4 percent through September, and job gains had slowed. But there’s an obvious problem: inflation remains above target.” (01/06/26)
https://www.independent.org/article/2025/12/25/the-feds-phantom-tradeoff/