Fed's Miran: Cuts Should Be Achieved by One Percentage Point This Year
Federal Reserve Governor Stephen Miran stated that the US central bank should cut interest rates by a total of 1 percentage point (100 bps) this year, ideally through four 25 bps cuts delivered "sooner rather than later." He made the remarks in an interview with Fox Business on Thursday.
Miran also stated that he has not seen anything "worrying" in the private credit market, although he acknowledged some bumps. He added that current price conditions appear relatively stable and that the US does not face a serious inflation problem.
From a structural economic perspective, Miran called AI potentially "very disinflationary," and argued that overly strict banking regulations could hamper credit creation. He also emphasized that labor market data is improving, but that it is too early to declare conditions "completely safe."
Policy-wise, Miran's push for aggressive cuts highlights the divergence in tone within monetary policy, especially as some other officials emphasize the need for stronger evidence that inflation is truly returning to target.
For the market, the main message is clear: the dovish camp has additional ammunition, but the realization of the "fourth cut" will still depend heavily on inflation data and the future resilience of the US economy—especially if the Fed wants to maintain its credibility amidst increasing political scrutiny.
Source: Newsmaker.id
