Fed's Miran Still Wants Rate Cuts Despite Iran War

• Federal Reserve Governor Stephen Miran believes monetary policy is 'modestly restrictive' and advocates for 100 basis points of rate cuts this year to reach a neutral stance.
• He does not see evidence of long-term inflation expectations rising, attributing short-term moves to mechanical factors like oil prices.
• Miran highlights the risk of undershooting the Fed's inflation target due to expected deceleration in housing and goods inflation.
• He believes it's too early to change current projections based on recent geopolitical events (Iran war) and thus supports continued rate cuts.

Federal Reserve Governor Stephen Miran believes monetary policy is 'modestly restrictive' and advocates for 100 basis points of rate cuts this year to reach a neutral stance. He dismisses current market concerns about long-term inflation expectations, seeing short-term moves as mechanical. Miran highlights the risk of undershooting inflation due to housing and goods price dynamics and believes the Fed should continue acting proactively based on current projections, as recent geopolitical events haven't altered his outlook.