Fed Governor Miran still backs cuts, says interest rates could be 'about a point' lower this year

• Miran believes the Fed could lower rates by 'about a point' gradually over a year, while the current fed funds rate sits at 3.5%-3.75%
• He has dissented at every Fed meeting he's attended since September 2025, consistently pushing for rate cuts
• Market pricing currently implies no rate moves in either direction before year-end, despite Miran's advocacy for easing policy

Summary: Fed Governor Miran Advocates for 100 Basis Points in Rate Cuts

Federal Reserve Governor Stephen Miran reiterated his support for lower interest rates in a CNBC interview Monday, projecting rates could fall "about a point" (100 basis points) over the course of a year. The fed funds rate currently sits at 3.5%-3.75%.

Key Position:

Miran argued policymakers should disregard the current energy price spike, which has pushed oil above $100 per barrel and increased gasoline prices by more than $1 per gallon. He emphasized that monetary policy works with a lag and cannot address near-term inflation movements.

Inflation Outlook:

The Fed governor stated he would only become concerned if evidence emerges of a wage-price spiral or rising inflation expectations. He cited market-based indicators showing inflation expectations remain "well-anchored" despite energy price pressures.

Voting Record:

Miran has dissented at each Fed meeting he has attended since September 2025, consistently advocating for rate cuts. His stance contrasts with current market pricing, which implies no rate moves in either direction through year-end.

Political Context:

Miran's term has expired, but he continues serving while Kevin Warsh's nomination to replace current Fed Chair (whose term expires in May) remains stalled in the Senate Banking Committee.

Market Implications:

The divergence between Miran's dovish position and market expectations suggests uncertainty around the Fed's policy trajectory. His emphasis on gradual cuts over a year timeframe indicates patience despite his preference for looser policy. Traders should monitor inflation data and energy prices for potential policy shifts.