Federal Reserve (Fed) Board of Governors plant Stephen Miran doubled down on his belief that the Fed has a lot more room to cut its way to neutral interest rates. Miran also reiterated his opinion that Trump’s stark anti-immigration policies will entirely alleviate shelter price inflation, a policy approach that Miran has not backed up with any meaningful economic data thus far.
Key highlights
I hope we’ll have the needed data by the October FOMC meeting.
Policy has become much more restrictive this year.
I believe my neutral rate view is consistent with others on the Fed.
The economy is strong on policies boosting supply side of the economy.
The Fed has plenty of space to cut rates. Zero lower bound is a long ways off.
So much has changed since last year and monetary policy should reflect that.
There will always be relative price changes.
Trump’s inflation goals are separate from the Fed’s work.
I expect housing costs to ease on immigration shifts.
