\n<\/p>\n
Stephen Miran, Donald Trump\u2019s new appointee on the Federal Reserve\u2019s interest-rate-setting board, has doubled down on his calls for the central bank to more aggressively cut interest rates.<\/p>\n
Last week, the Fed cut interest rates by a quarter point, bringing rates down to a range of 4% to 4.25% \u2013 the lowest it\u2019s been since early 2023. Out of 12 voting board members, Miran was the only one to vote against the crowd. He wanted a half-point cut, not a quarter-point cut.<\/p>\n
Miran told the Economics Club of New York that rates should be below 3% by the end of the year, and dismissed fears that the US president\u2019s tariffs were stoking inflation.<\/p>\n
\u201cRelatively small changes in some good prices have led to what I view as unreasonable levels of concern,\u201d Miran said, adding that tariffs would ultimately lead to \u201csubstantial swings in net national savings\u201d for the country.<\/p>\n
That is a very different view from the one that Fed chair Jerome Powell spoke of last week.<\/p>\n
\u201cHigher tariffs have begun to push up prices in some categories of good, but their overall effects on economic activity and inflation remain to be seen,\u201d Powell said. While it seems like inflation from tariffs may be \u201crelatively short-lived, a one-time shift in the price level\u201d, inflation could be \u201cmore persistent\u201d.<\/p>\n
\u201cThat is a risk to be assessed and managed,\u201d Powell said.<\/p>\n
Miran said his analysis has led him to believe that sellers from exporting countries will lower their prices. Much inflation is from rising costs in the housing market, including the rental market, which he said will see a cooling off as the US\u2019s population decreases amid Trump\u2019s immigration policies.<\/p>\n
Economic data appears to be more in line with Powell\u2019s analysis. Since April, inflation measured by the consumer price index has gone up 0.6% \u2013 from 2.3% to 2.9%.<\/p>\n
For years, the Fed has set its target inflation rate at 2%, a rate which has not been seen since 2021. But Miran said that he sees this goal as too restrictive.<\/p>\n
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Sign up to This Week in Trumpland<\/span><\/p>\n A deep dive into the policies, controversies and oddities surrounding the Trump administration<\/p>\n Privacy Notice: <\/strong>Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on theguardian.com to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.<\/span><\/p>\n after newsletter promotion<\/p>\n \u201cI just think inflation is very difficult to measure,\u201d Miran said. \u201cSo having a very precise inflation target like that can lead to excessive micromanagement.\u201d<\/p>\n The clash in views cements Miran as Trump\u2019s economic advocate on the Fed. Miran is the first Fed governor to serve on the board while simultaneously holding a role in the executive branch in nearly 100 years. Miran is also chair of Trump\u2019s Council of Economic Advisers, a role from which is taking a leave of absence while he serves on the Fed\u2019s board until January 2026.<\/p>\n The new Fed governor on said he would continue to be a voice of dissent against the direction that the Fed is heading in, though he emphasized that his views come from his own analysis. When asked about the discussions he had with the president, Miran said that Trump \u201cnever asked me to set policy in a specific way\u201d.<\/p>\n \u201cI will always be polite and collegial, but I don\u2019t view building with consensus for the sake of establishing consensus,\u201d Miran said. \u201cI\u2019m not going to vote for something I don\u2019t believe in just for the sake of creating an illusion of consensus where there is none.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Stephen Miran, Donald Trump\u2019s new appointee on the Federal Reserve\u2019s interest-rate-setting board, has doubled down on his calls for the central bank to more aggressively cut interest rates. Last week, the Fed cut interest rates by a quarter point, bringing rates down to a range of 4% to 4.25% \u2013 the lowest it\u2019s been since<\/p>\n","protected":false},"author":1,"featured_media":23217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[8163,680,304,4214,4437,319,519,1428,520,517,71],"class_list":{"0":"post-23216","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-aggressively","9":"tag-calls","10":"tag-cut","11":"tag-doubles","12":"tag-fed","13":"tag-federal","14":"tag-interest","15":"tag-pick","16":"tag-rates","17":"tag-reserve","18":"tag-trumps"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/23216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23216"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/23216\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/23217"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}