Steve Miran Advocates for Aggressive Fed Rate Cuts Amid Economic Risks

Steve Miran has called for the Federal Reserve to slash interest rates by 125 to 150 basis points this year, cautioning that delays could exacerbate unemployment and undermine the Fed's employment mandate. In a Bloomberg interview, Miran stressed, "The longer that policy stays excessively restrictive, the greater the risks to the downside for the economy."

Reflecting on his first FOMC meeting, Miran described an unexpectedly collegial atmosphere where decisions hinge on policy arguments rather than politics. "We make policy by persuasion," he noted, underscoring the Fed's consensus-driven approach.

Miran tied his rate-cut rationale to shifting demographic and fiscal trends, arguing that last year's elevated neutral rate—fueled by surging immigration and government borrowing—has since reversed. "We had the biggest positive population growth shock in my lifetime, and now it’s turned into the biggest negative shock," he said, criticizing the Fed's sluggish response to these structural changes.