Federal Reserve's Stephen Miran Stands Firm Amid Controversy

Stephen Miran, the newly appointed U.S. Federal Reserve Governor, has defended his position as an independent policy maker after advocating for significant rate cuts just hours after joining the central bank. Miran vowed to present a thorough argument for his position, emphasizing he received no direction from President Donald Trump.

In a statement issued on Friday, Miran articulated his view that a near 'neutral' rate of interest is appropriate in the current economic climate, which he believes poses no immediate inflation risk. His stance diverges from the Fed's consensus, which favors a more gradual approach to rate cuts amid rising inflation and potential labor market weaknesses.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, endorsed the recent rate cuts, citing unemployment concerns. He downplayed fears of lost public confidence in the Fed's independence, despite Trump's influence attempts. Courts have so far protected Fed independence from political interference.

(With inputs from agencies.)