Fed Governor Miran Warns Restrictive Rates May Trigger Recession
Federal Reserve Board Governor Stephen Miran has broken ranks with his colleagues, arguing current interest rates of 3.75%-4.00% risk economic contraction. The newest FOMC voting member advocated for a 50bps cut during recent meetings, standing alone in his dissent.
"Policy has overshot neutral by a significant margin," Miran told Bloomberg, challenging Chair Powell's stance. His recession warning follows similar cautions in a New York Times interview last week, where he endorsed a 25bps reduction at December's meeting despite Powell calling such action premature.
Markets appear to side with Miran's dovish outlook. CME's FedWatch tool prices in a 70.3% probability of another rate cut by year-end, with traders anticipating looser monetary conditions.
