US Federal Reserve officials remain divided over how deep to cut interest rates amid a government shutdown that deprives policymakers of vital data, with some expressing greater concern about inflation, while others fear the stability of the labor market.
New Federal Reserve Governor Stephen Miran, appointed by President Donald Trump, emphasized on Tuesday his desire to reach the so-called "neutral" level of interest rates faster than his colleagues at the central bank. This level is intended neither to stimulate nor to inhibit economic growth.
Speaking at the Managed Funds Association Policy Outlook 2025 conference, Miran said, "The neutral rate has declined compared to last year, making monetary policy more restrictive than it was several quarters ago." He added, "More tightening in monetary policy carries some risks in the future, as its effects are typically delayed and could lead to economic weakness." He explained that he is not overly pessimistic about the current situation, but he sees "some potential risks if monetary policy is not adjusted."
