Critical Interest Rate Cut Call from Fed Member Stephen Miran

Important Statement from Stephen Miran

Stephen Miran, a new member of the American Central Bank (Fed), has called for large interest rate cuts. Miran emphasized that the Central Bank is at a critical juncture in the current period and warned that keeping interest rates significantly above the 'neutral' level could lead to serious divisions in the labor market.

Attention to the Neutral Interest Rate Level!

According to Miran, this 'neutral' level is currently falling towards a point close to zero, and urgent steps need to be taken regarding this. Miran stated that he did not agree with the Fed's recent decision to cut interest rates by a quarter point and supported a half-point cut, expressing that concerns about inflation are excessive.

Price Increases in Imported Goods

Speaking to Fox Business, Miran emphasized that his colleagues should focus on improving border and fiscal policies rather than focusing on small price increases in imported goods due to tariffs. This situation has also fueled discussions regarding current economic policy.

Analyst Opinions Vary

However, Miran's view contradicts the assessments of many analysts and central bankers regarding the neutral interest rate and current policies. Especially the uncertainties in the labor market are increasing discussions about what path the Fed will take in the coming period.