MNI BRIEF: Miran Not Convincing Fed Colleagues On Larger Cuts

Stephen Miran said Wednesday he doesn't think he is yet convincing Federal Open Market Committee colleagues the economy needs faster and larger interest rate cuts to catch up with a lower neutral rate. 

"I don't think I'm yet at the point where I'm convincing large swaths of the economy of my underlying view, because I think that a lot of people want to see it in the data," Miran said at a Nomura Research Forum in Washington. "For me, it's important to set policy based on the forecast." (See: MNI POLICY: Fed Set To Keep Cutting Rates Despite Missing Data) 

"Monetary policy should be forward looking and not backward looking. And sort of the excessive data dependence is just a symptom of either not having a forecast or not having confidence in your forecast," said Miran. He added that he is "making progress convincing people that there are some channels they haven't considered," including population growth and immigration.