Fed Governor Miran Anticipates December Rate Cut Amid Diverging Views
Federal Reserve Governor Stephen Miran has signaled a potential interest rate cut in December, despite dissent among some policymakers. The newly appointed official reiterated his stance during an interview on the Monetary Matters podcast, emphasizing that only unforeseen developments could derail this trajectory.
The Fed's October decision to lower rates by 25 basis points to 3.75%-4% marked a cautious approach to moderating inflation. Miran downplayed the need for aggressive easing, stating the central bank neither requires 75-basis-point cuts nor needs to compensate for prior adjustments.
Labor market conditions appear to be softening gradually rather than deteriorating rapidly, according to Miran's assessment. This measured decline reduces the urgency for emergency interventions. However, the governor cautioned that no December action is guaranteed, reflecting the Fed's data-dependent approach.
