Trump’s new Fed Governor says resisting further rate cuts risks jobs
Stephen Miran, in his first public remarks since taking the post, argues the Fed should ease policy more to protect employment.
Stephen Miran, President Trump’s newly appointed Federal Reserve governor, told the Economic Club of New York on Monday that the Fed’s reluctance to cut rates more aggressively poses a material risk to the U.S. job market. Miran voted for a jumbo-size, 50-basis-point cut at last week’s Federal Open Market Committee meeting, becoming the sole dissenter in a decision supported by 11 of 12 policymakers, including Fed Chair Jerome Powell.
He took up his post last week after being confirmed by Congress. The Senate approved his nomination 48-47, with Sen. Lisa Murkowski joining Democrats in opposition. Miran replaces Adriana Kugler, a Biden appointee who stepped down last month, and will serve the remainder of Kugler’s term through Jan. 31, 2026.
Miran’s remarks at the Economic Club of New York marked his first public appearance since joining the board. The former fellow at the Manhattan Institute previously led the Council of Economic Advisers and served as an economic adviser to the president before joining the Fed. He said the appropriate federal funds rate is in the mid-2% area, roughly two percentage points lower than the current policy setting, and that leaving policy too tight risks unnecessary layoffs and higher unemployment. Miran emphasized that his view of monetary policy diverges from that of other FOMC members.
The remarks come as policymakers weigh future moves amid broader debates about the balance between inflation control and job growth. The Fed’s latest policy actions followed a period of intense scrutiny of the central bank’s approach to easing, with some voices advocating more aggressive accommodation to support employment.
St. Louis Fed President Alberto Musalem said in remarks Monday that lowering 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 in remarks at the Brookings Institution in Washington, D.C. “However, I believe there is limited room for easing further without policy becoming overly accommodative, and we should tread cautiously.”
This is a developing story. Check back for more updates.
