Federal Reserve Governor Stephen Miran said he is looking for 150 basis points of interest-rate cuts this year to boost the labor market.
Describing monetary policy as restrictive, Miran said underlying inflation is likely running at 2.3%, which means Fed officials have room to cut further.
“I’m looking for about a point and a half of cuts. A lot of that is driven by my view of inflation,” Miran said Thursday in an interview on Bloomberg Television’s Surveillance. “Underlying inflation is running within noise of our target, and that’s a good indication of where overall inflation is going to be going in the medium term.”
Fed officials remain divided over how much to lower rates this year after cutting by three quarters of a percentage point over their last three meetings. A growing number favor holding rates unchanged at least until they have more data on inflation and jobs
In forecasts for 2026, the median projection from policymakers was for one quarter-point reduction. Investors expect at least two.
Miran has been calling for aggressive rate cuts since September, when he went on leave from his post as chair of the White House Council of Economic Advisers to fill a Fed governor term that ends this month.
“There’s about a million Americans who don’t have jobs, who could have jobs without causing unwanted inflation,” Miran said.
