He called for a series of 50 basis point cuts, contending that inflation is moderating and that the Fed’s current stance is “very restrictive.”
Miran also addressed concerns about the reliability of government data amid a federal shutdown and recent leadership changes at the Bureau of Labor Statistics. “People have to believe that the data are reflective of the true state of the economy and not… doctored to achieve a particular political outcome,” he said.
However, not all policymakers are on board with rapid easing. Minneapolis Fed President Neel Kashkari warned that the economy would “have a burst of high inflation,” due to drastic rate cuts.
During a panel hosted by the Minnesota Star Tribune, Kashkari said, “If you try to drive the economy faster than its potential to grow and its potential to produce prices, you end up just going up across the economy.”
Kashkari highlighted mixed signals in the economy, noting that “the labor market appears to be weakening,” while inflation could remain “elevated for a year or two close to 3%,” above the Fed’s 2% target. He added, “It’s too soon to know what is gonna happen,” and flagged tariffs as a complicating factor for inflation.