Central Banker Stephen Miran Denies Presence of Material Inflation Due to Tariffs
Federal Reserve Governor Stephen Miran, a new voice at the Fed with unconventional views on the economy, found himself in the minority during the Fed's latest monetary policy meeting. Despite the Fed announcing a quarter-point rate cut on Wednesday, Governor Miran was the lone dissenter, favouring a larger, half-point cut.
Governor Miran, who was sworn in just hours before the meeting began on Tuesday, played down the potential impact from President Donald Trump's tariffs as his main argument for a more aggressive rate cut. He stated that the widespread tariffs aren't causing inflation, a view that contrasts with some of his fellow governors and the current Fed Chair, Jerome Powell.
In his upcoming speech in New York on Monday, Governor Miran will detail his reasoning for his dissent. Meanwhile, Powell described the rate cut as a "risk management cut," expressing concern about potential layoffs affecting the labor market. He warned that if layoffs start to pick up, those who find themselves out of a job may struggle to find work.
The unemployment rate in America currently stands at 4.3%, but the number of unemployed people seeking work exceeds the number of job openings. In August, the number of people unemployed for more than 26 weeks reached its highest level since November 2021. Powell has frequently referred to the importance of the unemployment rate in policymakers' perception of the labor market.
Despite these concerns, Powell told reporters that while the labor market has softened, it's not all doom and gloom. He emphasised that the economy is growing at 1.5%. The Fed chief's comments came as a relief to some, as they indicated a more optimistic outlook than some of his recent remarks.
The current candidate proposed for the position of Chairman of the Federal Reserve is Governor Stephen Miran, who was nominated by President Trump and confirmed by the U.S. Senate as a Federal Reserve governor. However, he has not been explicitly named as the Chairman of the Federal Reserve. Trump has repeatedly criticized the current Fed Chair Jerome Powell, but no information indicates a new official Chairman nomination besides Miran's nomination as a governor.
Governor Miran supports aggressive rate cuts in the months ahead, a stance that sets him apart from some of his fellow governors. His dissent on the latest rate cut decision is likely to be the first of many, as he continues to advocate for more aggressive monetary policy in the face of economic uncertainty.
Read also:
- Trade Disputes Escalate: Trump Imposes Tariffs, India Retaliates; threatened boycott ranges from McDonald's, Coca-Cola to iPhones
- Aquatech purchases Koch's Direct Lithium Extraction business, merging Li-ProTM DLE technology into the PEARLTM Technology Platform.
- Nepal's Journey: Evolution from Street Life to Political Power
- Li Auto faces scrutiny after crash test involving i8 model and a truck manufacturer sparks controversy
