Fed Governor Stephen Miran says more than 100 basis points in rate cuts justified this year

• Miran cited distortions in housing inflation data and portfolio management services figures as exaggerating actual inflation pressures beyond the Fed's 2% target
• The Fed cut rates three times in the previous year to a range of 3.50% to 3.75%, with markets expecting a pause at the upcoming meeting later this month
• Miran was nominated by Trump to the Federal Reserve Board in 2025 and currently serves as chair of the White House Council of Economic Advisers

Summary

Federal Reserve Governor Stephen Miran advocated for aggressive monetary easing in 2026, stating that rate cuts exceeding 100 basis points are justified this year. Speaking on Fox Business' "Mornings with Maria," Miran argued that underlying inflation is already near the Fed's 2% target when adjusted for measurement distortions.

Key Arguments:

Miran pointed to specific data distortions inflating official inflation readings, including backward-looking housing inflation metrics that don't reflect slower current market rent growth, and portfolio management services data that artificially elevate core inflation measures. He emphasized that current policy remains "clearly restrictive" and risks constraining economic growth unnecessarily.

Labor Market Concerns:

The governor highlighted a gradually cooling labor market with rising unemployment as additional justification for faster rate cuts, warning that overly tight policy could stall growth as economic conditions improve.

Current Policy Context:

The Federal Reserve cut rates three times in 2025, bringing the federal funds rate to approximately 3.50%-3.75%. Markets currently expect the Fed to hold rates steady at the upcoming meeting later this month, making Miran's call for substantial cuts notably dovish.

Background:

President Trump nominated Miran to the Federal Reserve Board of Governors in 2025 to complete a term ending January 31, 2026, following Governor Adriana Kugler's resignation. Miran currently serves as chair of the White House Council of Economic Advisers and stated he has not discussed succeeding as Fed Chair with Trump.

Market Implications:

Miran's dovish stance contrasts with current market expectations, potentially signaling internal Fed debate over the appropriate pace of monetary easing amid conflicting inflation and employment signals.