Fed’s Miran Drops a Bombshell: 50 Bps Cut on the Table—Why 25 Bps is Just the Starting Line You Can’t Ignore!

Fed’s Miran Drops a Bombshell: 50 Bps Cut on the Table—Why 25 Bps is Just the Starting Line You Can’t Ignore!

Ever wondered what happens when the Federal Reserve hits the brakes on rate hikes, but some folks think they should be stomping the accelerator instead? Federal Reserve Governor Stephen Miran is shaking things up by pushing for a much swifter approach to cutting interest rates—calling a 50 basis point slash not just desirable but necessary, with 25 bps being the absolute minimum. As inflation cools and job growth falters, Miran’s stance diverges sharply from the cautious quarter-point cuts the Fed has been settling for. It’s a classic case of the eternal tug-of-war between moving fast enough to stay ahead of a shifting economy, and moving cautiously to avoid tipping the scales too far. The question on everyone’s mind: Is the Fed about to pivot into overdrive or will it stick to the slow lane—and what does that mean for businesses and investors like us watching from the sidelines? Dive in to unpack the latest Fed debates and what they could signal for the financial landscape ahead. LEARN MORE


Fed’s Miran pushes for 50 bps cut, says 25 bps ‘minimum’ needed

Fed governor breaks from consensus again, calling for faster rate cuts as inflation and jobs data show signs of weakness

Fed’s Miran pushes for 50 bps cut, says 25 bps ‘minimum’ needed

Photo: Aaron Schwartz

Key Takeaways

  • Fed Governor Miran supports a 50 bps cut, arguing current data justifies faster easing.
  • Internal Fed debate continues as Powell signals no firm commitment on December decision.

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Federal Reserve Governor Stephen Miran said the US central bank should move more aggressively to cut interest rates to avoid falling behind a weakening economy.

In a CNBC interview today, Miran again called for a 50 basis point cut, saying even a 25 point reduction would be the bare minimum. He dissented at both the September and October meetings, where the Fed instead opted for quarter-point moves.

“If you’re making policy for what the data are now, you’re backward looking,” Miran said, adding that monetary effects take 12 to 18 months to filter through the economy.

Miran said the available data already shows signs of cooling in both inflation and the labor market. He argued this should make the Fed more dovish than its September forecast, which projected three total cuts for the year.

While market odds for a December cut remain above 60%, they’ve been drifting lower. Fed Chair Jerome Powell has emphasized that another cut isn’t guaranteed, as officials remain split between holding rates steady to combat inflation or easing further to support employment.

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