Federal Reserve Governor Michelle Bowman: This year, we need to cut interest rates by more than 100 basis points, and I look forward to seeing how Waller performs next
In his speech, Milan clearly stated that potential inflation is not a problem, and there is not much strong price pressure seen in the economy. He pointed out that the rise in long-term yields is partly due to improved growth expectations rather than heightened inflation concerns
Stephen Miran, a director appointed by Trump, stated on Tuesday that the Federal Reserve needs to cut interest rates by more than 100 basis points this year and is looking forward to Kevin Warsh's performance as the Fed Chair.
Miran clearly expressed during a speech on Fox Business Network that the current interest rate level is too restrictive, potential inflation is not a problem, and he does not see much strong price pressure in the economy. This judgment provides a basis for his advocacy of significant rate cuts.
He emphasized that better economic growth in the future does not require higher interest rates. He pointed out that the rise in long-term yields is partly due to improved growth expectations rather than heightened inflation concerns.
Miran expressed anticipation for Warsh's performance as Fed Chair. Wall Street Insight previously mentioned that Trump nominated former Fed Governor Kevin Warsh as the next Fed Chair, leading the market to bet on a more hawkish balance sheet policy.
Consistent Opposition to Support Larger Scale Easing
Miran has consistently shown a dovish stance in Fed policy decisions. Last week, when the Fed decided to keep interest rates unchanged, he voted against it, advocating for a 25 basis point cut. When the Fed implemented a series of 25 basis point cuts at the end of last year, Miran also cast a dissenting vote, but at that time he supported a larger cut of 50 basis points.
Miran raised objections to the current interpretation of inflation data. He stated:
"When I look at potential inflation, I really don't see a lot of very strong price pressures in the economy. I don't see a lot of strong supply-demand imbalances that require monetary policy to address."
He believes that the reason the Fed maintains interest rates at excessively high levels is mainly due to technical flaws in the measurement of inflation, rather than actual price pressures themselves. This viewpoint challenges the rationale for the Fed's current policy stance and provides a basis for a more aggressive rate-cutting path
