Federal Reserve Watch for Dec. 15: Miran Says Shelter Inflation Reflects Past Imbalances, Not Current Issues, Advocates Further Rate Cuts

02:40 PM EST, 12/15/2025 (MT Newswires) -- Fed Governor Stephen Miran (voter) said that shelter prices remain elevated due to supply/demand imbalances from two to four years ago and the FOMC should be focused on the outlook for inflation, not fixing issues in the past.

Miran repeated his belief that housing inflation will continue to slow and that goods prices will not be lifted by tariffs to the extent that others do and that FOMC should move more rapidly to lower its policy rate closer to the neutral rate to prevent further labor market deterioration.

New York Fed President John Williams (voter) said that downside risks to employment have increased and the upside risks to inflation have softened as he expects tariffs to have a one-off price impact. Williams said that he expects real GDP growth to accelerate in 2026 and for inflation to slow.

Recent comments of note:

(Dec. 12) Chicago Fed President Austan Goolsbee (next votes in 2027) said that he dissented at the December meeting in favor of no rate change because he was uncomfortable front loading too many rate cuts and urged patience to assure that inflation is back on a path to 2%. Goolsbee said that the unemployment rate has been fairly stable and that there is low risk that the job market will fall apart overnight, while at the same time there were disappointing inflation data released before the government shutdown cut off the flow of government data.

(Dec. 12) Kansas City Fed President Jeffrey Schmid (next votes in 2028) said in a statement explaining his dissent at the December FOMC meeting that he still sees inflation as elevated along with signs that the economy is not being restrained by the current level of interest rates.

(Dec. 12) Cleveland Fed President Beth Hammack (voter in 2026) said that inflation is still too high and that she would like to see a slightly more restrictive stance of policy to assure that the pace of price gains is slowing, according to Reuters.

(Dec. 12) Philadelphia Fed President Anna Paulson (voter in 2026) said that her concerns about a weakening job market are greater than her fear of upside inflation risks, adding that she sees the current stance of monetary policy as "somewhat restrictive."

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