Federal Reserve Governor Stephen Miran signaled his willingness to support the Fed’s decisions if it pursues another interest rate cut, instead of issuing another symbolic dissent as he has in the past.
Won’t ‘Inflict Real Harm’ On The Economy
On Tuesday, in a post on X, Sara Eisen, the co-host of CNBC’s “Squawk on the Street,” highlighted her recent exchange with Miran ahead of the Federal Open Market Committee meeting on December 9 and 10, where key interest rate decisions are set to be made.
According to Eisen, Miran told her he “wouldn't dissent if it helps push through a cut,” adding that he would not “inflict real harm on the economy just to make a rhetorical point.”
This comes amid growing internal divisions within the Federal Reserve, casting doubts regarding the possibility of another rate cut in December.
Miran’s Calls For Aggressive Rate Cuts
Miran, who was nominated for the Federal Reserve Board by President Donald Trump in August this year, has repeatedly called for aggressive rate cuts.
He dissented at the two most recent FOMC meetings, pushing for a 50-basis-point rate cut last month while the majority of the board voted in favor of a 25-basis-point move instead. The vote was split 10-2, with Kansas City Fed President Jeffrey R. Schmid calling for no rate cuts, marking a sharp divide within the central bank.
Miran previously argued that the appropriate federal funds rate lies in the “mid-2 percent area,” more than a full percentage point below its current level, warning of rising risks that could threaten the Fed's “employment mandate.”
Trump’s ‘Sock Puppet’ At The Fed
With his views broadly aligning with Trump’s own demands for aggressive rate cuts, Miran’s independence as a Federal Reserve Governor has been called into question.
Sen. Elizabeth Warren (D-Mass.) slammed his recent dissensions, saying, “Stephen Miran [is] not beating allegations that he is Donald Trump's sock puppet at the Fed.”
Economist Justin Wolfers echoed similar concerns, while noting that Miran’s actions were broadly symbolic, aimed at showing the world that he was “Trump's boy at the Fed.” Wolfers also said that it was “very unusual to dissent in your first meeting.”
According to the CME Group’s FedWatch tool, the probabilities of a 25-basis-point rate cut during the December 10 FOMC meeting now stand at 84.7%.
Photo: Image via Shutterstock/ Pla2na
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