Miran's Battle with Fed: Pushing for Interest Rate Cuts

Stephen Miran, a new member of the Federal Reserve and former economic advisor to President Trump, is advocating for significant interest rate cuts to prevent labor market instability amidst concerns over tariffs and inflation. However, his call faces resistance from fellow Fed officials who emphasize caution and stability.

Stephen Miran, the latest addition to the Federal Reserve's policymaking team, continued his campaign for aggressive interest rate cuts in the United States on Thursday. Miran argues that such cuts are essential to preventing a collapse in the labor market, despite his colleagues' fears of inflation spurred by tariffs.

Central bankers, including Chicago Fed President Austan Goolsbee, remain wary of drastically changing interest rates, noting the stable nature of the labor market. Goolsbee emphasized the risk of making mistakes if too much is done too quickly, advocating instead for a more measured approach.

Despite some agreement regarding tariff impacts, Fed officials like San Francisco's Mary Daly caution against hasty adjustments, considering existing inflationary pressures. Meanwhile, Kansas City Fed President Jeffrey Schmid warns of excessive rate cuts, citing continued balance in the economy despite cooling conditions.

(With inputs from agencies.)