Independent Stance: Stephen Miran Advocates for Steep Rate Cuts

Stephen Miran, newly appointed U.S. Federal Reserve Governor, has asserted his independence from political influence despite previous ties to President Donald Trump. On joining the central bank, Miran diverged from the mainstream stance by advocating for significant rate cuts, emphasizing the minimal inflation risk and highlighting low housing demand owing to immigration controls.

Miran's solitary support for a 50-basis-point rate cut breaks from the Federal Reserve's gradual strategy, as he claims tariff-related inflation pressures are overstated. Without directives from Trump, Miran maintains his policy decisions are based on rigorous data analysis, as he prepares to extensively justify his position in upcoming speeches.

Governors like Neel Kashkari echo concerns about the labor market, supporting further rate reductions to counter potential unemployment spikes. While political pressures mount, confidence in the Fed's independence persists, evidenced by stable Treasury yields. The potential firing of Fed Governor Cook remains contested, underscoring the judiciary's role in preserving central bank autonomy.