Fed’s Miran expects December rate cut despite dissenting views

Investing.com -- Federal Reserve Governor Stephen Miran stated he anticipates the U.S. central bank will cut interest rates in December, even though some non-voting policymakers may oppose such a move.

"I expect us to cut in December unless there’s some sort of surprise," Miran said during an interview on the Monetary Matters podcast with Jack Farley. He noted that the "distribution of votes around the table" differs from the "distribution of views" among Fed officials.

Miran expressed his preference for reaching a neutral policy stance through 50 basis-point rate reductions, while acknowledging that "a lot of my colleagues want 25 BPS increments" instead.

The Fed governor downplayed the need for more aggressive monetary easing, stating the central bank doesn’t "need 75 basis point cut" and doesn’t "need to make up for lost ground on cuts."

Regarding economic conditions, Miran characterized the current labor market deterioration as "gradual, not accelerating," suggesting the Fed sees no immediate need for emergency measures.

While Miran expects a December cut based on current information, he cautioned that "nothing is absolutely guaranteed at the end of the day."

You May Also Be Interested In

• Rubio says Iran cannot charge tolls in Strait of Hormuz
• S&P Global US Manufacturing PMI (Jun P) 55.7 vs 54.6 Expected
• Absci, FuelCell Energy surge premarket; Cerebras, FedEx tumble