Fed Frenzy: Trump's Pick Sparks Interest Rate Debate

Stephen Miran, President Trump's appointee to the Federal Reserve Board, has stirred controversy with his call for a significant reduction in the key interest rate, suggesting it should be lower than 4.1%. Miran's proposal, hovering around 2.5%, diverges drastically from his colleagues on the rate-setting committee, highlighting a stark policy disagreement within the Fed.

Miran, also an economic adviser to Trump, cited declining immigration, increased tariff revenues, and an aging population as factors supporting his view. His comments, delivered at the Economic Club of New York, underscore the unique perspective he brings to the Fed's deliberations, amid concerns about the institution's independence from political pressures.

The controversy deepens as Trump's past attempts to influence the Fed, including his call to reduce rates further and recent legal battles over Fed board appointments, spotlight the growing tension between political influence and economic policy. Miran, however, insists on his independent analysis and commitment to economic principles.

(With inputs from agencies.)