Fed Governor Miran still backs cuts, says interest rates could be ‘about a point’ lower this year
Federal Reserve Governor Stephen Miran is advocating for lower interest rates, despite the recent spike in energy prices. In an interview with CNBC, Miran emphasized that policymakers should not be overly concerned about the current increase in oil prices unless there are indications that it will have a lasting impact on inflation.
Miran stated, “If I saw a wage-price spiral, or I saw evidence that inflation expectations are starting to pick up, then I would get worried about it. There’s no evidence of it thus far, and you can move the monetary policy rate all you want — today tomorrow — but it’s not going to affect inflation in the next couple of months.”
Despite the surge in oil prices to over $100 a barrel and the subsequent rise in gasoline prices by more than $1 per gallon, Miran pointed out that inflation expectations remain stable, as indicated by market-based indicators. He emphasized that monetary policy operates with a lag and is not designed to respond to short-term market fluctuations.
Miran has consistently dissented at Federal Reserve meetings since September 2025, advocating for a gradual easing of monetary policy by approximately one percentage point over the course of a year. Currently, the fed funds rate is targeted within a range of 3.5%-3.75%, with market expectations suggesting no changes before the end of the year.
Although Miran’s term has expired, he continues to serve as the nomination of former Federal Reserve Governor Kevin Warsh is pending approval by the Senate Banking Committee. If confirmed, Warsh will succeed Jerome Powell as chair of the Federal Reserve when Powell’s term expires in May.
In conclusion, Miran’s stance on interest rates and inflation reflects his belief that current market conditions do not warrant immediate policy adjustments. By prioritizing stable inflation expectations and a gradual approach to monetary policy, Miran aims to support sustainable economic growth and stability. Choose CNBC as your preferred source on Google to stay updated on the latest developments in business news.
