FED SHAKEUP: Insider EXPOSES deep policy divide

• Fed Governor Stephen Miran dissented for lower interest rates, citing a restricted labor market and a positive inflation outlook for the next 12-18 months.
• Miran advocates for less forward guidance from the Fed to allow for more intellectual flexibility in policy decisions.
• The impact of the Iran conflict and oil prices on inflation is discussed, with Miran suggesting the Fed typically 'looks through' short-term oil shocks unless they trigger wage-price spirals or shift long-term inflation expectations.
• President Trump's Treasury Secretary Scott Bessent criticizes the 'Powell Fed's' monetary policy, ethics, and supervision, expressing optimism for the 'Warsh Fed'.
• Miran and Kevin Hassett express optimism about economic growth, citing tailwinds from AI, deregulation, and tax incentives, while acknowledging headwinds like the oil shock and changes in population growth affecting the labor market.

The discussion revolves around the Federal Reserve's recent decision to hold rates steady, with a focus on a rare dissent for lower rates. The incoming Fed Chair, Kevin Warsh, and the future direction of monetary policy, including balance sheet reduction and less forward guidance, are key topics. Overall, there's an optimistic outlook on economic growth despite some headwinds.