Fed Governor Miran still backs cuts, says interest rates could be 'about a point' lower this year
CNBC • • business
Key Points:
- Federal Reserve Governor Stephen Miran urged policymakers to ignore the current energy price spike unless it leads to sustained inflationary pressures such as a wage-price spiral or rising inflation expectations.
- Miran noted that inflation expectations remain well anchored despite oil prices exceeding $100 a barrel and gasoline prices rising by more than $1 per gallon.
- He emphasized that monetary policy impacts inflation with a lag and is not designed to respond to short-term market fluctuations.
- Miran has dissented at every Fed meeting since September 2025, advocating for gradually lowering interest rates by about one percentage point over the next year.
- Although Miran’s term has expired, he continues to serve while the Senate Banking Committee delays confirmation of former Fed Governor Kevin Warsh, who is slated to succeed Jerome Powell as Fed chair in May.
