Federal Reserve regional officials spoke extensively on Monday. San Francisco Fed President Mary Daly expressed support for the central bank's 25-basis-point rate cut last week, suggesting that a "slightly lower policy rate" remains appropriate given inflation above the 2% target and a cooling labor market. She noted U.S. inflation currently stands around 3%, still above target but significantly down from peaks, while the job market has slowed but is "not on the brink of a cliff." Regarding the December 9-10 policy meeting, Daly emphasized keeping "an open mind," stating she would assess whether this year's cumulative 50-bps cuts sufficiently protect employment or if further easing is needed. She added that despite government shutdowns disrupting official data, the Fed can rely on surveys and business contacts for policymaking—"we're not flying blind."

In contrast, Chicago Fed President Austan Goolsbee struck a more hawkish tone, stating he hasn't decided on supporting a December cut and that his threshold for easing is "higher than the last two meetings." Goolsbee cautioned that inflation has exceeded targets for four-and-a-half years with "still problematic" trends, making him wary of further loosening. While acknowledging labor market cooling, he maintained most indicators show stable demand, warning that premature cuts amid data gaps and unclear inflation trajectories risk "front-running policy mistakes." He stressed rates should fall "with inflation, not ahead of it."

Meanwhile, Fed Governor Lisa Cook adopted a dovish stance, calling December "a live meeting" for potential cuts as inflation and employment risks rise in both directions. She argued maintaining overly tight rates could sharply worsen labor markets, while excessive easing might unanchor inflation expectations. Cook defended last week's 25-bps cut, saying policy remains "modestly restrictive" with employment risks now outweighing price pressures. Like colleagues, she acknowledged data challenges but emphasized sufficient private-sector inputs for decision-making.

Notably, Cook remains embroiled in political-legal controversies, facing Trump-era allegations of mortgage application fraud—a dismissal attempt currently blocked in courts, with Supreme Court review expected January 2024. Appointed by Biden through 2038, she retains voting power.

Markets currently price roughly 50% odds for December easing, but policy uncertainty has grown amid missing data, unclear inflation trends, and disputed labor market cooling speeds.