Fed Holds Rates | Central Bank Independence Defended

WASHINGTON, 2026-01-29 00:04:00

Unexpected Dissent at the Fed: Two Officials Back Rate Cut

Two Federal Reserve officials broke with prevailing sentiment, voting in favor of lowering interest rates.

• Stephen Miran and Christopher waller were the two dissenting votes.
• Miran currently leads Trump’s Council of Economic Advisers on leave from his post.
• Waller, a Trump appointee, has been discussed as a potential successor to jerome Powell.

In a surprising move that signals potential fractures within the Federal Reserve, two officials voted to lower interest rates. This decision directly contrasts with the current holding pattern maintained by the majority of the committee. The immediate question is: who were these dissenting voices, and what does their vote signal about the future of monetary policy?

Did you know? – The Federal Reserve’s Federal Open Market Committee (FOMC) meets eight times a year to determine the direction of monetary policy. Decisions are made by a vote of the committee’s twelve members.

Who Voted for a Rate Cut?

Stephen Miran,presently on leave from his role leading Trump’s Council of Economic Advisers,and Christopher Waller,a trump appointee whose name has surfaced in discussions regarding a potential replacement for current Fed Chair Jerome Powell,cast the votes in favor of a rate reduction. Their positions offer a glimpse into differing perspectives on the economic landscape and the appropriate course of action.

Why did they dissent? Miran and Waller believe current interest rates are unnecessarily restrictive,potentially hindering economic growth. They cited concerns about slowing inflation and the risk of triggering a recession. Waller, in particular, has previously expressed a more hawkish stance, making his vote for a cut even more unexpected. What was the outcome? The FOMC ultimately voted to maintain the current interest rate, with Miran and Waller as the sole dissenting voices. The vote was 10-2 to hold steady. How did it end? The decision to hold rates steady was accompanied by a statement emphasizing the Fed’s commitment to bringing inflation back to its 2% target, while also acknowledging the improving labor market. The committee will continue to monitor economic data and adjust policy as needed.

Pro tip – Monitoring the minutes from FOMC meetings can provide deeper insight into the reasoning behind committee members’ votes and their economic outlook. These minutes are typically released a few weeks after each meeting.

Waller’s potential candidacy to succeed Powell adds another layer of intrigue to his decision. His willingness to deviate from the consensus could be interpreted as a signal of his independent thinking and a potential shift in the Fed’s approach should he be appointed chair.

Reader question – What impact do you think this dissent will have on future Fed policy decisions? Share your thoughts in the comments below.