Fed Governor Urges Swift Interest Rate Cuts Amid Trade Tensions
Federal Reserve governor Stephen Miran is pushing for more interest rate cuts. He believes these cuts are urgent due to rising trade tensions between the U.S. and China.
Miran spoke to CNBC, stating that the latest trade conflict adds new risks to the economy. He advocates for a 1.25 percentage point reduction by 2025. The Fed already cut rates by 25 basis points in September.
His remarks come before the upcoming Federal Reserve policy meeting in October. The Fed had hinted at more cuts before the U.S. government shutdown. Now, with economic data on hold and trade tensions flaring, the need for action is clear. He made these comments at the Invest in America Forum, emphasizing the importance of speedy action. He sees increased economic uncertainty and wants policymakers to respond.”The situation has changed,” he said. “We need to act now.”
Miran’s call for cuts comes as the U.S. and China face renewed trade disputes. This uncertainty could harm the economy. He thinks the Fed should cut rates further. The central bank’s next meeting is set for Oct. 28–29.
Miran believes the market faces more risks. Policymakers must address this. “We can’t ignore the new challenges,” he said. “We need to adjust our policies.”
On Oct. 14,Fed Chair Jerome Powell hinted at a dovish stance. This boosted stocks and crypto. Miran’s call for cuts reflects growing economic concerns.
