US: Fed's Miran pushes for bigger interest rate cuts
Stephen Miran, a Federal Reserve governor, wants the Fed to cut interest rates by 0.50% at its October 29 meeting, warning that keeping rates high could make economic shocks worse.
"If monetary policy stays as restrictive as it is, and you have a shock like this hit the economy, it does materially increase the negative consequences of that shock," he told Fox Business on Thursday.
Fed cut rates last month for 1st time since December 2024
Last month, the Fed made its first rate cut since December 2024, lowering rates by 0.25% after weak job growth and rising unemployment (now at 4.3%).
Inflation's still running high at 2.9%, above the Fed's target.
Miran actually voted against this small cut, pushing for a bigger move.
Waller warns against rapid cuts, says job market needs to weaken 1st
Miran expects three smaller cuts this year, but thinks only a 0.25% cut will happen in October.
Meanwhile, Governor Christopher Waller is urging caution—he doesn't want to risk inflation spiking again and says the Fed should only act faster if the job market gets shakier.