Trump Appointment Calls for Quick Rate Cuts from Miran to the Fed

Fed Officials Continue to Debate Interest Rate Cuts

Federal Reserve (Fed) officials are struggling to access critical data due to the impact of the government shutdown. This situation creates a contentious environment regarding how much to lower interest rates. Some Fed members are concerned about inflation, while others are focused on negative developments in the labor market.

Miran's Views on Neutral Interest Rate

The new Fed governor Stephen Miran, appointed by President Donald Trump, stated on Tuesday that he wants to move interest rates more quickly to a "neutral level." The neutral level refers to an interest rate that neither accelerates nor slows down economic growth.

Miran’s Economic Assessments

Miran said, “I believe the neutral interest rate has changed downward compared to the past year. This indicates that monetary policy has become more restrictive than it was a few quarters ago.” He also noted, “It is worth mentioning that additional restrictions in monetary policy may pose some economic risks in the future. Due to lagged effects, we may expect a weakening of the economy. I'm not pessimistic in the short term, but I can see that risks could increase if measures are not taken quickly.”