Fed’s Most Dovish Member Stephen Miran Makes Statement on Interest Rates

Stephen Miran, one of the new members of the US Federal Reserve (FED), stated in his statements that monetary policy is still “too restrictive” and argued that interest rate cuts should continue. After being appointed by President Donald Trump, Miran became one of the most prominent figures within the “dovish” wing of the Fed.

Miran stated that the current monetary policy limits economic growth and increases risks, saying, “The Fed’s policy is still very restrictive and current policies create risks.” Miran emphasized that labor market data showed that interest rates could be lowered below the current level and argued that a looser stance would be appropriate to prevent an economic slowdown.

Miran claimed that inflation will trend downward in the coming period: “The decline in housing inflation is one reason for the softening of overall inflation. Market-based core personal consumption expenditures (PCE) is also closer to 2%.” These statements were interpreted as a signal that the Fed's inflation target had nearly been achieved. Miran also stated that he was more optimistic about the inflation outlook than other Fed officials.

Miran, who also took a cautious approach to market movements, said, “Stock rallies should not be responded to mechanically with policies.” He stressed that the Fed should focus its decisions on fundamental economic indicators rather than reacting to market fluctuations.

Miran also touched on the potential impact of President Trump's tariff policies on monetary policy: “If customs duty revenues disappear, this will have an impact on Fed policy. Increased tariff uncertainty could drag down the economy.”