Federal Reserve Gov. Stephen Miran is calling on the central bank to cut interest rates by 150 basis points during 2026.
According to a Reuters report, Miran insisted the central bank should move with greater vigor on rate cuts as inflation moves closer to its desired goal of 2%.
“I’m looking for about a point and a half of cuts,” said Miran during an appearance on Bloomberg Television’s Surveillance. “A lot of that is driven by my view of inflation. Underlying inflation is running within noise of our target, and that’s a good indication of where overall inflation is going to be going in the medium term.”
Miran, who repeatedly sought 0.50% rate cuts during his brief time on the Federal Open Market Committee, took a leave of absence to fill the remainder of the Fed governorship term left vacant with Adriana Kugler’s resignation last August. Miran’s place on the board of governors expires at the end of the month, but President Trump has yet to name a replacement.
The Interest rate is a 2 edged sword. Who do you want to hurt? Borrowers or those who invest in loans for their retirement or the estates people leave for their families to live on and go to school? Just how low do you want it? Investors are moving their funds to other investments that will yield more even as we speak limiting the availability of funds.
Fed only controls short end of yield curve. Long term assets still have returns tied to economic activity and projected growth