Trump Appointee Fed Member Miran Calls for Interest Rate Cuts

Bold Statements from Fed Member Stephen Miran

Fed member Stephen Miran stated that monetary policy is still following a restrictive direction and advocated for the necessity of significant interest rate cuts.

Critiques on Fed's Restrictive Policy

Miran, in an interview with Bloomberg, said, "The Fed's current policy is well below the neutral level, and for this reason, I see no justification for the continuity of any restrictive measures." He emphasized that he has a more optimistic outlook on inflation and questioned its effects on policy.

Comments on Interest Rate Cuts

Miran criticized the Fed’s interest rate cuts of 0.25% in September and October, arguing that these cuts should have been half a percentage point. He also pointed out that the tensions in the credit markets indicate the tightness of monetary policy.

Tensions in Credit Markets and Their Impact on the Economy

Miran stated, “If a series of credit issues that seem independent from one another have emerged recently, this provides important insights into the stance of monetary policy,” emphasizing that a prolonged restrictive monetary policy could lead to a downturn in the economy.