Fed’s Miran Says His Inflation Forecast Is More Optimistic, Calls For Series Of 50 Bps Rate Cuts: Report

Federal Reserve Governor Stephen Miran on Tuesday reportedly said that his forecast for inflation is more optimistic than some of his colleagues’.

According to a Bloomberg report, Miran said during an event at the Managed Funds Association that the Fed’s current monetary policy is very restrictive and called for a series of 50-basis-point rate cuts.

“My forecast for inflation is more sanguine than some of my colleagues. So I view the mandate as less in tension than some others do,” Miran said, according to the report.

At the September meeting of the Federal Open Market Committee (FOMC), when the policy rate was cut by 25 basis points, Miran expressed dissent and voted for a larger 50-bps cut. During the Tuesday interview, Miran said he expects a limited impact on inflation from President Donald Trump’s tariffs. As such, he sees less conflict between the central bank’s dual mandate of stable inflation and maximum employment.

Miran, however, stated in an interview last week that he is open to adjusting his view on inflation. “If something were to happen that were to tell me that that channel is invalidated, that there’s some shock that’s going to be pushing rents materially higher, the benign inflation forecast that I have would have to be adjusted as a result,” he said.

Meanwhile, U.S. equities declined in Monday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.47%, the Invesco QQQ Trust ETF (QQQ) fell 0.58%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.34%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.

The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.31% at the time of writing.

Also See: Gold Prices Continue To Rise, Futures Cross $4,000 For First Time: Ray Dalio Reportedly Says It’s Like Early 1970s Again

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