WASHINGTON--Federal Reserve Governor Stephen Miran said the central bank is keeping monetary policy too tight and should pursue steeper interest-rate cuts this year as underlying inflation pressures ease, according to FOX Business.
Speaking with Maria Bartiromo on Mornings with Maria, Miran said rate reductions totaling more than 100 basis points are warranted because inflation is already running close to the Federal Reserve’s 2% target once temporary distortions are removed. He argued current policy remains clearly restrictive and risks unnecessarily slowing economic growth, FOX Business reported.
“I think we’ve got to cut more than 100 basis points this year,” Miran said, citing what he described as measurement quirks in key inflation components. After adjusting for those factors, he said, underlying inflation is “within noise of our target,” according to FOX Business.
Miran pointed in particular to housing inflation data, which he characterized as backward-looking and out of step with current market conditions, noting that market rents have slowed even as official measures remain elevated. He also cited distortions in portfolio management services data, arguing that declining investor fees are still adding to core inflation readings and overstating price pressures, FOX Business reported.