Stephen Miran Advocates for Significant Fed Rate Cuts Exceeding 100 Basis Points This Year
Federal Reserve Governor Stephen Miran discusses his expectations for Fed policy in 2026 and analyzes the state of the U.S. economy on ‘Mornings with Maria.’
Federal Reserve Governor Stephen Miran has called for a more aggressive approach to interest rate adjustments this year. He believes that reductions exceeding 100 basis points are warranted as inflationary pressures continue to diminish.
In an interview with Maria Bartiromo on FOX Business’ “Mornings with Maria,” Miran noted that inflation is nearing the Federal Reserve’s 2% target when temporary measurement distortions are accounted for. He emphasized that the current policy remains restrictive and may be hindering economic growth, making significant rate reductions suitable for 2026.
“I think we’ve got to cut more than 100 basis points this year,” Miran stated. “Once you adjust it for quirks like the housing thing… once you adjust it for quirks like the portfolio management services… once you adjust it for those things, underlying inflation is running within noise of our target.”
Forbes Media Chairman and Editor-in-Chief Steve Forbes joins ‘Varney & Co.’ to weigh in on the Bank of America CEO’s remarks regarding the Federal Reserve’s independence and President Donald Trump’s economic messaging and accomplishments.
Miran specifically highlighted housing inflation data as “backward-looking,” arguing it does not accurately reflect current market conditions. He pointed out that market rents are increasing at a slower annual rate, even as official measures still indicate higher housing costs due to post-pandemic disruptions.
Additionally, he mentioned distortions in portfolio management services data, which he believes continue to inflate core inflation readings despite declining fees charged to investors. This, he argues, exaggerates inflation pressures and supports the case for a quicker pace of easing.
Federal Reserve Board Chairman Jerome Powell holds a news conference following a Federal Open Market Committee meeting on June 18, 2025, in Washington, D.C. (Win McNamee / Getty Images)
Last year, the Federal Reserve implemented three interest rate cuts, bringing the benchmark federal funds rate to a range near 3.50% to 3.75%. Currently, markets largely anticipate that policymakers will maintain rates at their upcoming meeting later this month.
However, Miran contends that further easing will be necessary, particularly as the labor market shows signs of cooling and the unemployment rate has increased.
QI Research CEO Danielle DiMartino Booth discusses her forecast for four Fed rate cuts in the first half of 2026, driven by rising unemployment and corporate layoffs on ‘Making Money.’
Beyond inflation, Miran pointed to a labor market that is gradually cooling, with the unemployment rate edging higher. He warned that maintaining overly tight policy could stall growth just as underlying economic conditions begin to improve.
FURTHER RATE CUTS IN QUESTION AS FED POLICYMAKERS DEEPLY DIVIDED OVER DECEMBER CUT, MINUTES SHOW
“I think policy is clearly restrictive,” Miran asserted, “And holding the economy back and with underlying inflation… I think that… well over 100 basis points of cuts are going to be justified this year.”
Miran expressed concern that persistent lagging inflation measures could leave policy unnecessarily restrictive. As underlying price pressures ease and the labor market cools, he advocated for the Fed to act swiftly in cutting rates to prevent excessive slowdowns in growth.
President Donald Trump nominated Miran, who currently chairs the White House Council of Economic Advisers, to the Federal Reserve Board of Governors in 2025 to complete a term ending January 31, 2026, following the resignation of former Governor Adriana Kugler.
Miran informed Bartiromo that he has not discussed the possibility of serving as the next Fed chair with Trump. “It’s not something I’ve put myself forward for,” he stated.
Federal Reserve Governor Stephen Miran discusses his expectations for Fed policy in 2026 and analyzes the state of the U.S. economy on ‘Mornings with Maria.’
Federal Reserve Governor Stephen Miran has called for a more aggressive approach to interest rate adjustments this year. He believes that reductions exceeding 100 basis points are warranted as inflationary pressures continue to diminish.
In an interview with Maria Bartiromo on FOX Business’ “Mornings with Maria,” Miran noted that inflation is nearing the Federal Reserve’s 2% target when temporary measurement distortions are accounted for. He emphasized that the current policy remains restrictive and may be hindering economic growth, making significant rate reductions suitable for 2026.
“I think we’ve got to cut more than 100 basis points this year,” Miran stated. “Once you adjust it for quirks like the housing thing… once you adjust it for quirks like the portfolio management services… once you adjust it for those things, underlying inflation is running within noise of our target.”
Forbes Media Chairman and Editor-in-Chief Steve Forbes joins ‘Varney & Co.’ to weigh in on the Bank of America CEO’s remarks regarding the Federal Reserve’s independence and President Donald Trump’s economic messaging and accomplishments.
Miran specifically highlighted housing inflation data as “backward-looking,” arguing it does not accurately reflect current market conditions. He pointed out that market rents are increasing at a slower annual rate, even as official measures still indicate higher housing costs due to post-pandemic disruptions.
Additionally, he mentioned distortions in portfolio management services data, which he believes continue to inflate core inflation readings despite declining fees charged to investors. This, he argues, exaggerates inflation pressures and supports the case for a quicker pace of easing.
Federal Reserve Board Chairman Jerome Powell holds a news conference following a Federal Open Market Committee meeting on June 18, 2025, in Washington, D.C. (Win McNamee / Getty Images)
Last year, the Federal Reserve implemented three interest rate cuts, bringing the benchmark federal funds rate to a range near 3.50% to 3.75%. Currently, markets largely anticipate that policymakers will maintain rates at their upcoming meeting later this month.
However, Miran contends that further easing will be necessary, particularly as the labor market shows signs of cooling and the unemployment rate has increased.
QI Research CEO Danielle DiMartino Booth discusses her forecast for four Fed rate cuts in the first half of 2026, driven by rising unemployment and corporate layoffs on ‘Making Money.’
Beyond inflation, Miran pointed to a labor market that is gradually cooling, with the unemployment rate edging higher. He warned that maintaining overly tight policy could stall growth just as underlying economic conditions begin to improve.
FURTHER RATE CUTS IN QUESTION AS FED POLICYMAKERS DEEPLY DIVIDED OVER DECEMBER CUT, MINUTES SHOW
“I think policy is clearly restrictive,” Miran asserted, “And holding the economy back and with underlying inflation… I think that… well over 100 basis points of cuts are going to be justified this year.”
Miran expressed concern that persistent lagging inflation measures could leave policy unnecessarily restrictive. As underlying price pressures ease and the labor market cools, he advocated for the Fed to act swiftly in cutting rates to prevent excessive slowdowns in growth.
President Donald Trump nominated Miran, who currently chairs the White House Council of Economic Advisers, to the Federal Reserve Board of Governors in 2025 to complete a term ending January 31, 2026, following the resignation of former Governor Adriana Kugler.
Miran informed Bartiromo that he has not discussed the possibility of serving as the next Fed chair with Trump. “It’s not something I’ve put myself forward for,” he stated.
