New Fed Governor Miran Says Refusing More Rate Cuts Poses Job Risk

Stephen Miran, a newly seated Federal Reserve governor, warned Monday that the Fed’s reluctance to cut rates further risks the U.S. job market. Speaking at the Economic Club of New York in his first public appearance since taking the post last week, Miran said the policy stance is “very restrictive” and that the appropriate funds rate is in the mid-2% area, about two percentage points below current policy. He noted that at the most recent FOMC meeting he backed a jumbo-size, half-point cut, becoming the lone dissenter as 11 of 12 policymakers voted for a regular 25-basis-point cut led by Fed Chair Jerome Powell. “It should be clear that my view of appropriate monetary policy diverges from those of other Federal Open Market Committee members,” Miran said.

Miran, who previously led the White House Council of Economic Advisers, was confirmed by the Senate 48-47 to join the Fed’s Governing Council, replacing Adriana Kugler, a Biden appointee who stepped down last month. He will serve the remainder of Kugler’s term through Jan. 31, 2026. Kugler’s departure and Miran’s arrival come amid a broader effort by President Trump to tilt the central bank toward officials more likely to support rate cuts.

Observers note a broader political dynamic around the Fed, with the White House and some lawmakers pressing for a board more inclined to ease policy, even as many officials remain hesitant to lower the key rate further. The confirmation came one day before the Fed decided to slash rates at its Sept. 16-17 meeting, a move that reflected a division over how aggressively policy should respond to evolving inflation and labor-market conditions.

St. Louis Fed President Alberto Musalem, speaking at the Brookings Institution in Washington, said inflation should be the top priority for the central bank. “I supported the 25-basis-point reduction in the FOMC’s policy rate last week as a precautionary move intended to support the labor market at full employment and against further weakening,” Musalem said. “However, I believe there is limited room for easing further without policy becoming overly accommodative, and we should tread cautiously.”

The White House and Powell have had tensions over the direction of policy at times this past summer, including questions about the pace of growth and the renovation of the Fed’s downtown offices. Still, officials say the Fed remains independent, even as President Trump seeks to shift its composition. This is a developing story. Check back for updates.