Fed's Miran Weighs In on Warsh, Rate Cuts and Balance Sheet

• Miran will remain a Federal Reserve Governor until his replacement is confirmed, which is common practice and could take several weeks.
• He advocates for 25 basis point rate cuts, down from 50 bps, as the Fed is closer to a neutral stance, despite lingering concerns about labor market weakness.
• Miran argues that current inflation measures are distorted by 'quirks' in portfolio management services and housing data, suggesting underlying inflation is closer to the Fed's 2% target.
• He praises Kevin Warsh as a 'fantastic pick' for Fed Chair, citing his credibility and insightful thinking on monetary policy, believing he will effectively lead the central bank.
• Miran supports shrinking the Fed's balance sheet but emphasizes the need for regulatory reform first, noting that short-rate adjustments can offset any impact on long-term rates.

Federal Reserve Governor Stephen Miran discusses his continued role at the Fed, advocates for slower rate cuts due to progress towards neutral and slightly improved labor market data, and critiques current inflation measurement methods. He expresses strong support for Kevin Warsh as the next Fed Chair and supports shrinking the balance sheet, provided regulatory reforms are implemented.