Federal Reserve Governor Stephen Miran said the U.S. central bank should be more aggressive in cutting interest rates.
Last week, the Fed lowered a key policy rate by a quarter point for the first time this year to a new target range of 4 to 4.25 percent. While investors anticipated substantial rate-cutting over the next 15 months, monetary policymakers signaled a more conservative outlook.
Officials believe the federal funds rate—which influences borrowing costs for businesses and consumers—will settle at around 3 percent by the end of 2027.
But Miran said it should be “almost 2 percentage points lower,” or around 2.5 percent.
Appearing at the Economic Club of New York on Sept. 22, the new member of the Fed Board of Governors said the current administration policies are creating a different economic climate, pointing to deregulation, tariff income, and changes to immigration and tax policy. Keeping interest rates elevated for longer, he says, threatens the maximum employment side of the Fed’s dual mandate….