MNI BRIEF: Miran Says Fed Closer To Neutral, Can Cut Slowly

Federal Reserve Governor Stephen Miran on Friday said interest rates remain too restrictive, but because the fed funds rate is closer to neutral then the central bank can ease rates at a slower pace than his preferred 50 basis point clips months earlier.

"We've made some progress reducing rates. We can sort of, in my view, proceed at a slower pace, at about a quarter point per meeting. It is not longer as imperative to move in 50 clips," he told Bloomberg TV, noting rates are still too restrictive but also citing better labor market data recently. "I still have some concerns there."

Miran repeated his concerns that inflation over the Fed's 2% goal is due to quirks in the data. (See: MNI INTERVIEW: Fed’s Miran Sees Substantial Rate Cuts In 2026) 

Asked about President Donald Trump's new Fed chair nominee Kevin Warsh, Miran said Warsh "has a long and illustrious career and history as a very insightful thinker on monetary policy. He is a fantastic pick from the president. He's got enormous credibility. I think he's got enormous gravitas," Miran said, adding that he expects Warsh to be able to build consensus among FOMC policymakers. (See: MNI: Warsh Credible Pick, Must Earn FOMC Support: Ex-Officials)   

"I will be staying in my seat until someone is confirmed to replace me, presumably chairman-designate Kevin Warsh," he added. He said he does not know whether he will be returning to the White House after his Fed term is over.