One Fed Governor Sees Half-Point Cut in December: Our Top 7% and 8% Dividend Stock Picks

"However, last week, we witnessed the most alarming piece of data we had seen in some time: a staggering 153,074 job cuts, the highest in over two decades, driven by the adoption of artificial intelligence (AI) and cost-cutting measures. Major tech and retail giants, including Amazon ( NASDAQ: AMZN), UPS ( NYSE: UPS), Intel ( NASDAQ: INTC), and Target (NYSE: TGT), have announced significant layoffs."

"This in turn sparked Federal Reserve Governor Steven Miran to make a forceful case for a half-percentage-point interest rate reduction at the Federal Open Market Committee's December meeting, arguing that recent economic indicators justify more aggressive monetary easing. He also said this: "A 50 basis point reduction would still leave us in restrictive territory, but it would demonstrate our commitment to achieving both sides of our dual mandate.""

Inflation data and other factors briefly shifted expectations away from a third federal rate cut in December. A recent wave of 153,074 job cuts—the highest in over two decades—was driven by AI adoption and corporate cost-cutting. Major employers including Amazon, UPS, Intel, and Target reported significant layoffs. Federal Reserve Governor Steven Miran advocated a half-percentage-point rate reduction at the December FOMC meeting, citing falling core PCE inflation and a modest rise in unemployment. Miran argued that a 50-basis-point cut would keep policy restrictive while supporting the Fed's dual mandate. Markets could react with a shock and a potential end-of-year rally. Four 7% dividend stocks are identified as buying opportunities.

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