Fed's Miran maintains call for aggressive interest rate cuts this year

• Miran dissented alongside Governor Christopher Waller at the January 28 FOMC meeting, voting for a quarter-point cut while the committee voted 10-2 to hold rates unchanged after three consecutive cuts in late 2024
• He advocates for 'a little bit more than a point' (over 100 basis points) of cuts this year, significantly more aggressive than market expectations of two 25 basis point cuts
• Miran's Fed term expired January 31, though he may remain until a successor is confirmed, with Kevin Warsh nominated as Fed chair and potentially filling Miran's vacancy

Summary

Federal Reserve Governor Stephen Miran is advocating for aggressive monetary easing, calling for over 100 basis points (one percentage point) in interest rate cuts throughout the year. Speaking on Fox Business, Miran reiterated his dovish stance following his dissent at the January 28 FOMC meeting.

Key Details:

• Miran was one of two dissenters (alongside Governor Christopher Waller) in a 10-2 vote that kept rates unchanged at 3.5%-3.75%
• The Fed had previously implemented three consecutive 25 basis point cuts in September, November, and December
• Current market expectations suggest only two 25 basis point cuts this year, according to CME FedWatch
• Miran's term technically expired January 31, though he may continue until a successor is confirmed

Rationale:

Miran argues the Fed is "keeping rates too high" due to measurement quirks in inflation calculations rather than actual price pressures. He contends there are no significant supply-demand imbalances warranting current restrictive policy levels.

Personnel Changes:

President Trump has nominated Kevin Warsh to lead the Federal Reserve. Warsh, a former Fed governor, may fill the vacancy created by Miran's term expiration. Miran praised Warsh as a "fantastic choice," citing his respect among Wall Street, investors, and policymakers.

Market Context:

Miran's position contrasts sharply with other Fed officials, including Atlanta Fed President Raphael Bostic, who suggested rate cuts may not be necessary this year, highlighting significant internal division on monetary policy direction.