Posted on 10/05/2025 5:02:01 PM PDT by E. Pluribus Unum
The Trump appointee wants super-sized rate cuts.
Federal Reserve Governor Stephen Miran, the new kid at the Eccles Building, wants 50-basis-point interest rate cut. When does he want them? Now! Since arriving at the US central bank, President Donald Trump’s appointee to the Board of Governors has been on a one-man crusade to convince his colleagues, a la Henry Fonda’s character in 12 Angry Men, that super-sized rate cuts are warranted to boost the labor market and sustain economic momentum.
Stephen Miran Takes New York
The current federal funds rate, a key policy rate that influences borrowing costs for consumers and households, was lowered to a target range of 4% to 4.25% at the September Federal Open Market Committee (FOMC). This was the first interest rate cut of the year, and the Summary of Economic Projections suggests a couple more reductions are on the horizon.
Miran took a Sept. 22 field trip to the Economic Club of New York, delivering his first public speech since his confirmation to the Fed. Unsurprisingly, he defended his lone dissent at the September FOMC, where he championed a half-point reduction to the key policy rate.
According to Miran, the federal funds rate should be at 2.5%, suggesting that the central bank needs to deliver jumbo cuts in the coming months. Or, in other words, Fed Chair Jerome Powell and his colleagues have a lot of catching up to do.
His primary argument is that leaving monetary policy too restrictive for too long “risks unnecessary layoffs and higher unemployment.” Put simply, the current target range “brings significant risks to the Fed’s employment mandate.” Additionally, Miran contended that the Trump administration’s public policy pursuits are crafting a vastly different economic landscape than the one monetary policymakers observe. He pointed to deregulation, changes to immigration and tax policy, and...
(Excerpt) Read more at libertynation.com ...
Did not see mention of inflation in the article.
Big mistake. Fed is not a jobs program. Get rid of the Fed if you don’t like it. restore private banks not NGO banks.
Cuts are kind of getting boring and old. They’re only going to be temporary.
Abolish something or don’t expect much excitement.
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