‘It Has Never Happened’: Newest Fed Governor, Stephen Miran, Denies Pressure From Trump on Interest Rate Policy

A Federal Reserve governor, Stephen Miran, opened a week of closely watched central banker speeches Monday by addressing his lone dissent on interest rate cuts at the board’s most recent meeting, firmly rejecting suggestions that President Trump influenced his stance on monetary policy.“I’ve had a number of conversations with the president about the economy and economic policy,” Mr. Miran said at the Economic Club of New York. “He has never asked me to set policy in a specific way. He has never asked me. It has never happened.” In his first major speech as a Fed board member, Mr. Miran defended his push for more aggressive rate cuts during last week’s Federal Open Market Committee meeting. He was the sole dissenter, advocating for a half-percentage-point reduction while his 11 colleagues supported a more modest quarter-point cut.“Subsequent to last week’s meeting of the Federal Open Market Committee, it should be clear that my view of appropriate monetary policy diverges from those of other FOMC members,” Mr. Miran said. “I view policy as very restrictive, believe it poses material risks to the Fed’s employment mandate, and would like to explain why.” Mr. Miran argued that current interest rates — which the committee lowered last week to a range of 4 percent to 4.25 percent — are applying excessive pressure on an already-cooling economy and risk causing “unnecessary layoffs and higher unemployment.” He suggested rates should fall to around the mid-2 percent range under current economic conditions, nearly two percentage points below the existing policy rate.His position stands in stark contrast to his Federal Reserve colleagues, who have maintained caution about rate cuts amid persistent inflation concerns and worries that Mr. Trump’s extensive tariff policies could push prices higher.Last week’s decision marked the Fed’s first rate reduction since December 2024. Since Mr. Trump’s January inauguration, the president has maintained relentless pressure on the Federal Reserve — particularly Chairman Jerome Powell — to cut rates more aggressively.Mr. Miran joined the board of governors earlier this month, filling the seat vacated by a Biden appointee, Adriana Kugler, who departed abruptly in August. The central banker has drawn scrutiny for his decision to only temporarily step away from his previous role as the White House’s top economic adviser, raising concerns about potential conflicts of interest.When asked Monday how he would respond if Mr. Trump requested a specific policy position, Mr. Miran emphasized his commitment to independent decision-making.“I would consider his arguments — consider whether they had any merit — and then I would make up my own mind based on my own analysis,” Mr. Miran said. “And I would do that if it was the president or any other political actor.” Mr. Miran is the first of at least a dozen policymakers expected to address interest rate policy over the coming weeks. Mr. Powell is scheduled to speak Tuesday, followed by several other Fed officials through the remainder of this week.Economists will also be watching closely for the release on Friday of August’s Personal Consumption Expenditures Price Index — the Fed’s preferred inflation gauge — which could provide additional insight into the central bank’s future policy decisions.

‘It Has Never Happened’: Newest Fed Governor, Stephen Miran, Denies Pressure From Trump on Interest Rate Policy

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