Fed divisions clear after December meeting

The US Federal Reserve cut rates last week but there now is a clear division within its voter base

Trump-appointed Fed governor Stephen Miran continued to vote for a 50bps reduction in rates at the December meeting. Picture: Daniel Heuer/Bloomberg

The US Federal Reserve cut rates last week by 25 basis points (bps) but there now is a clear division within its voter base.

This was the third rate cut from the central bank in 2025, totalling 75bps. The Fed has now reduced rates by 175bps since its started to ease policy in September 2024 with interest rates now at 3.50-3.75%.