Mid-term may be reduced (7)
I believe the answer is:
trimmed
'reduced' is the definition.
('trim' can be a synonym of 'reduce')
'mid-term may be' is the wordplay.
'may be' is an anagram indicator.
'mid'+'term'='midterm'
'midterm' is an anagram of 'TRIMMED'.
(Other definitions for trimmed that I've seen before include "Clipped, cut back" , "Pruned" , "Rebuked once" , "Modified views" , "Decorated" .)