Fed's Miran still believes Fed should cut interest rates

Federal Reserve Governor Stephen Miran said on Monday it is too soon to say what the energy price shock due to the Iran war will do to inflation, and still thinks rate cuts are warranted to support the job market.

“Traditionally, you would look through an oil price shock like this, which means that my policy outlook from before is unchanged and my policy outlook from before would be gradual cuts of interest rates,” Miran said in an interview on Bloomberg’s television channel.

Referring to last week’s Fed meeting and the release of updated forecasts, Miran said, “I had about six cuts for the year at the last set in December, I reduced that to four cuts for the year in response to the inflation data… that we received between the two, between the two projection periods.”

Reuters