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Federal Reserve Governor Stephen Miran reiterated his call for an aggressive pace of interest rate cuts, arguing that monetary policy has become overly restrictive amid changing economic conditions. However, he downplayed differences with fellow policymakers, saying their long-term objectives remain aligned.
Speaking in an interview with Bloomberg Television on Friday, Miran said the Federal Reserve should move decisively to realign policy with current economic realities.
“If policy is out of whack, you should adjust it at a reasonably brisk pace,” he said. “We’re not at a crisis point yet, but keeping rates too high for too long could create bigger problems later.”
Miran’s comments reflect his belief that the neutral interest rate—the level that supports growth without fueling inflation—has fallen, particularly due to shifts in immigration and broader structural changes. This, he argued, means that keeping rates at current levels risks stifling growth and investment.
Miran, who is currently on leave from a position in the Trump administration, dissented at last month’s Federal Open Market Committee (FOMC) meeting, favoring a 50-basis-point cut instead of the quarter-point reduction that was approved. The committee lowered the federal funds rate to a range of 4%–4.25%, citing the need to balance inflation risks with rising concerns about a cooling job market.
Despite his push for faster easing, Miran insisted that his broader policy outlook remains consistent with that of his colleagues.
“My longer-run expectations for monetary policy aren’t so different,” he said. “The only difference is that I want to get there a little bit faster.”
Other Federal Reserve officials, however, signaled a more cautious approach amid lingering inflation concerns. Chicago Fed President Austan Goolsbee described the current environment as “a sticky spot,” pointing to persistent services inflation even as job growth slows.
“I’m wary about front-loading too many rate cuts and just counting on inflation going away,” Goolsbee warned during an appearance on CNBC.
Similarly, Dallas Fed President Lorie Logan urged restraint, saying that non-housing services inflation remains “worrisome” and that the central bank must be careful about cutting rates too quickly.
Meanwhile, Fed Vice Chair Philip Jefferson supported last month’s modest rate reduction, saying it helped prevent further job market deterioration while moving policy closer to a neutral stance.
“With unemployment at 4.3%, the labor market is softening,” Jefferson noted. “The recent easing supports our dual mandate of price stability and maximum employment.”
Fed Chair Jerome Powell also indicated that Miran’s preference for a larger rate cut was not widely shared among policymakers.
“There wasn’t widespread support at all for a 50-basis-point cut,” Powell said after the September meeting, emphasizing that larger adjustments are typically reserved for moments when policy is clearly out of alignment—something he said is “not at all” the case now.
Despite market optimism over potential rate cuts, Miran dismissed concerns that aggressive easing could overheat financial conditions.
“It’s a mistake to look at financial markets alone to judge the stance of policy,” he said. “Conditions in areas like housing finance remain relatively tight.”
While debate continues within the Fed about how quickly to ease, Miran’s stance underscores a broader discussion on how to balance growth risks with inflation management as the U.S. economy adjusts to evolving fiscal and labor dynamics.
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