Fed's Miran is speaking and said:
- Fed policy is to restrictive
Yesterday Miran spoke on CNBC and said that
- inflation data is becoming stale and continues to move lower, with evidence since September suggesting the Fed should be more dovish than its earlier stance.
- He argued that policy should be forward-looking rather than reactive, noting that some colleagues remain focused on backward-looking inflation measures.
- He described the labor market as softening, with the unemployment rate drifting higher,
- He emphasized that it is imperative to ease policy.
- He said financial conditions remain tight, especially in housing, and that any tariff-related inflation would be a one-off shock, not driven by excess demand.
- He expects some growth momentum early next year and sees it as reasonable to be incrementally more dovish, suggesting that a 50-basis-point rate cut would be appropriate, though at minimum 25 basis points should be considered.
- He also noted that the Fed’s mandate is not to address inequality or achieve “maximum employment” directly
