Stephen Miran, a Federal Reserve Board member and former economic advisor to U.S. President Donald Trump, has called for an aggressive interest rate cut of over 1 percentage point this year. In a recent interview with Fox Business, Miran argued that the current monetary policy is overly restrictive and hampering economic growth. “I believe a rate cut exceeding 100 basis points is warranted this year,” he stated.
Miran assessed that core inflation has already reached the Fed’s 2% target and predicted robust U.S. economic growth for the year ahead. However, he cautioned that this positive outlook hinges on the Fed’s willingness to lower interest rates.
The Federal Reserve implemented three consecutive 0.25 percentage point rate cuts in September, October, and December of last year. Throughout this process, Miran consistently advocated for a deeper cut of 0.50 percentage point reductions than the standard quarter-point reduction.
Miran’s term on the Fed board is set to expire on January 31, completing the remainder of Adriana Kugler’s term following her early resignation. Some analysts speculate that he may be considered for reappointment.
