Fed Governor Stephen Miran and New York Fed President John Williams jointly expressed confidence that inflation pressures are under control, signaling a potential shift toward rate cuts. The remarks lifted equity markets and pushed Treasury yields lower.
- Governor Stephen Miran and New York Fed President John Williams both expressed confidence that inflation is no longer a concern.
- Core PCE inflation is now at 2.4% annually, below the Fed’s 2.5% target.
- S&P 500 (SPX) rose 1.3% to 5,421.43 following the remarks.
- 10-year Treasury yield (TNX) dropped to 3.98%, and 30-year yield (FVX) fell to 4.51%.
- Dollar (USD) declined on expectations of earlier rate cuts.
- Market probability of a March 2026 rate cut increased to 78%.
Two of the Federal Reserve's most prominent figures, Governor Stephen Miran and New York Fed President John Williams, delivered a rare unified message: inflation is no longer a pressing concern. Their remarks, made during separate appearances on December 15, 2025, underscored a growing sentiment within the Fed that recent price stability is sustainable. The dovish tone comes amid a broader reassessment of inflation trends. Both officials cited recent data showing the core Personal Consumption Expenditures (PCE) index rising at a 2.4% annualized rate through November, well below the Fed’s 2.5% target. Additionally, the Atlanta Fed’s GDPNow forecast now projects 2.8% real GDP growth for Q4 2025, suggesting underlying economic strength without overheating. Financial markets reacted swiftly. The S&P 500 (SPX) jumped 1.3% to close at 5,421.43, driven by gains in consumer discretionary and technology sectors. The 10-year Treasury yield (TNX) fell 6 basis points to 3.98%, while the 30-year yield (FVX) dipped to 4.51%. The U.S. dollar (USD) weakened slightly, with the DXY index down 0.5% as investors priced in earlier rate cuts. The alignment between Miran and Williams—historically at odds on policy—adds weight to expectations of a dovish pivot at the upcoming December 17–18 FOMC meeting. Market pricing now reflects a 78% probability of a 25-basis-point rate cut in March 2026, up from 52% a week prior.