United States Fed makes hawkish December cut to interest rates

The Fed risks losing its inflation fighting credibility by focusing more on shoring up employment than stemming inflation, writes KPMG US Chief Economist Diane Swonk.

The United States (US) Federal Open Market Committee (FOMC) narrowly voted to cut rates another quarter point, which lowered the target range on the fed funds rate to 3.5 percent - 3.75 percent. The vote was contentious with dissents in opposite directions for a second meeting in a row. Governor Stephen Miran, who is on leave from his job at the helm of the Council of Economic Advisers at the White House, voted in favour of a more aggressive one-half percent cut. Kansas City Fed President ...

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Authors: Diane Swonk

Published Date: 11 December 2025