Fed's Miran Says It's Appropriate to Keep Cutting Rates

• Miran views current monetary policy as 'modestly restrictive' and believes it's appropriate to continue cutting rates by 25 basis points until reaching neutral.
• He suggests that the recent strength in the labor market and geopolitical events in the Middle East do not warrant a change in the Fed's projected path for rate cuts, as their impact on core inflation is limited.
• Miran expresses concern about the risk of undershooting the Fed's inflation target, particularly due to potential decelerations in housing and goods inflation.

Federal Reserve Governor Stephen Miran advocates for continued interest rate cuts, suggesting the current monetary policy is 'modestly restrictive' and should move towards a neutral stance. He believes it's too early to draw firm conclusions about the inflationary impact of Middle East tensions or recent labor market data, and highlights a risk of undershooting the Fed's inflation target.