Trump Fed Appointee Stephen Miran Urges Steeper Rate Cuts/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Federal Reserve Governor Stephen Miran, a Trump appointee, called for sharper interest rate cuts, arguing the current 4.1% level is too restrictive. Miran suggested the rate should fall closer to 2.5%, far below his Fed colleagues’ projections. His unusual dual role as a Trump economic adviser and Fed official has fueled debate over the central bank’s independence.
Quick Look: Miran’s Call for Lower Rates
- Current Fed rate: 4.1%.
- Miran’s proposal: Cut to 2.5%, nearly a full point below colleagues.
- Rationale: Declines in immigration, rising tariff revenue, aging population.
- Political controversy: Serves simultaneously on Fed Board and as Trump adviser.
- Fed independence concerns: Critics question blurred lines between politics and policy.
- Timeline: Miran’s Fed term ends in January 2026, but he could stay until a successor is confirmed.
- Economic risks: Miran warns current stance is “too restrictive,” stifling growth and jobs.
Trump Appointee Stephen Miran Calls for Steeper Fed Rate Cuts
WASHINGTON (AP) — Federal Reserve Governor Stephen Miran, appointed by President Donald Trump, is calling for the central bank to move far more aggressively in cutting interest rates. Speaking Monday at the Economic Club of New York, Miran said the Fed’s benchmark rate of 4.1% is overly restrictive and should be lowered closer to 2.5%.
That figure is well below the projections of his 18 colleagues on the Fed’s policymaking committee, highlighting the sharpest divergence in views inside the central bank in years.
Miran’s Case for Lower Rates
Miran argued that several structural changes in the U.S. economy justify a lower interest rate path:
- Declines in immigration free up housing supply and could ease rental costs, reducing inflationary pressure.
- Rising tariff revenues, estimated by the Congressional Budget Office at $300 billion annually, help shrink federal deficits.
- An aging population may reduce overall demand growth, easing upward pressure on prices.
Taken together, Miran said, these factors mean the Fed doesn’t need to keep rates as high to fight inflation.
“Policy Is Too Restrictive”
“It should be clear that my view of appropriate monetary policy diverges from those of other members,” Miran said in prepared remarks. He added that today’s high interest rates are “very restrictive” and pose “material risks” to the Fed’s dual mandate of maximizing employment and maintaining price stability.
A Controversial Appointment
Miran’s position at the Fed has stirred debate since he continues to serve as a top Trump economic adviser, taking unpaid leave while sitting on the Fed’s board. That arrangement, rare in Fed history, has heightened concerns about the erosion of the central bank’s independence from politics.
His current Fed term expires in January 2026, though he could legally remain until a replacement is confirmed by the Senate. Miran has indicated he may return to the White House after his term, but he has not ruled out staying longer at the Fed.
Fed Outlook vs. Miran’s Outlook
Last week, the Federal Reserve cut rates for the first time in 2025 but projected only gradual reductions over the coming year. The median expectation among Fed officials puts the policy rate above 3.5% into 2026 — still far higher than Miran’s suggested 2.5%.
That gap underscores just how much Miran’s economic reasoning departs from consensus, and it has set up a public debate over whether Trump’s influence is reshaping Fed deliberations.
Bigger Picture
While Miran frames his stance as an economic judgment, critics worry it reflects political pressure to juice growth ahead of the 2026 midterm elections. Supporters counter that his analysis highlights overlooked structural changes that could allow inflation to ease without rates staying elevated.
For now, Miran’s call underscores the divisions inside the central bank as it weighs how quickly to move from a fight against inflation to a stance that fosters stronger growth.
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