Stephen Miran Lowers Rate Cut Expectation to 100 Basis Points

Economic Data Shifts Expectations Fed Governor Stephen Miran has updated his monetary policy forecasts following the strong performance of the U.S.
economy in recent months.
Miran signaled a more cautious approach, softening his previous calls for aggressive interest rate cuts in light of new economic data.
Rate Cut Forecast Reduced to 100 Basis Points In an interview with the blog "The Peg," Miran announced that he has lowered his total interest rate cut expectation for this year from 150 basis points to 100 basis points.
He pointed to the unexpected resilience of the labor market and inflation indicators as the primary reasons for this revision, noting that the labor market has outperformed his forecasts over the past few months.
"This situation makes it necessary for me to re-evaluate my projections from December," Miran stated.
In previous assessments, Miran had warned that failing to lower interest rates quickly enough could harm the economy.
Political Context and Other Fed Perspectives Appointed to the Fed board by Donald Trump in September, Miran took a leave of absence from his position at the White House to assume the role, a move that sparked discussions regarding the independence of monetary policy decisions.
His stance during this process is being closely monitored by markets.
Meanwhile, San Francisco Fed President Mary Daly stated that current monetary policy is at a balanced point to control inflation and protect employment.
Daly emphasized that there are no signs of weakness in the labor market; on the contrary, recent data has shown strengthening.