Federal Reserve governor Steven Miran said the U.S. central bank should move decisively this year and cut interest rates more aggressively in order to preserve economic momentum, DKNews.kz reports.
“Inflation is basically at target”
Miran argued that core inflation is now broadly in line with the Fed’s 2% goal.
He expects the U.S. economy to continue growing at a solid pace — but warned that keeping borrowing costs too high for too long could undermine that outlook.
In his view, elevated rates risk:
- discouraging investment,
- slowing business and consumer activity,
- and weakening growth prospects.
Why this matters beyond the U.S.
The Fed’s policy rate is a benchmark for global markets.
It influences:
- the cost of credit,
- the strength of the dollar,
- capital flows into emerging economies,
- and overall market sentiment.
If the Fed does opt for “aggressive” easing, it could support growth — though it may also raise the risk of inflation flaring up again later.
On his own future at the Fed
Miran’s term expires on January 31.
Asked whether he had discussed becoming Fed chair with Donald Trump, he said he had not — but added that all of the names reportedly on the shortlist are credible candidates.
What comes next
The Fed faces a delicate balancing act: cut rates quickly to support the economy, or move cautiously and keep a close eye on inflation.
Markets are watching every signal. Even a single remark from policymakers can move the dollar, stocks and bond yields.
For now, Miran’s comments stand out as one of the clearest calls yet for easier monetary policy.
