Fed Governor Stephen Miran says Trump’s tariffs aren’t fueling inflation and urges deeper rate cuts to protect jobs. Read the full update here.
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There’s No ‘Material Inflation from Tariffs,’ Says New Central Banker Stephen Miran
Introduction
Federal Reserve Governor Stephen Miran, newly appointed by President Donald Trump, made his first public remarks as a policymaker, challenging conventional views on tariffs and inflation. Miran stated that Trump’s widespread tariffs have not caused “material inflation,” adding that interest rates should be cut more aggressively to safeguard the U.S. labor market. His comments, which came just days after the Fed announced its first rate cut in nine months, underline a growing debate inside the central bank about the pace and scale of monetary easing.
Stephen Miran’s First Public Statement as Fed Governor
Miran, who was sworn in just before Tuesday’s Fed meeting, immediately stood out as the lone dissenter on the latest policy decision. While the central bank opted for a quarter-point cut, Miran argued for a half-point reduction to counteract rising risks in the job market.
In an interview with CNBC, Miran explained:
- Tariffs are not driving inflationary pressures in the economy.
- Prolonged high borrowing costs may lead to weaker employment conditions.
- A faster pace of easing is necessary to maintain the Fed’s employment mandate.
Fed’s Recent Rate Cut and Differing Views
On Wednesday, the Federal Reserve announced a modest 0.25% rate cut in what Chair Jerome Powell described as a “risk management move.” Powell emphasized that while the labor market has softened, the broader economy remains stable, with unemployment at 4.3% and GDP growth at 1.5%.
However, Miran warned that waiting too long to act could amplify economic risks:
- Job growth has slowed significantly in 2025.
- Long-term unemployment has reached its highest level since late 2021.
- Without deeper cuts, layoffs could accelerate, making it harder for displaced workers to re-enter the job market.
Miran’s Unconventional Approach to Monetary Policy
Miran has already signaled his willingness to push for aggressive rate cuts, distinguishing himself from most of his colleagues. The Fed’s “dot plot” revealed one projection well below others for 2025 — which Miran confirmed was his.
He is set to deliver a keynote address at the Economic Club of New York next week, where he will provide a detailed breakdown of his economic reasoning and outlook for U.S. monetary policy.
Trump’s Influence and Fed Independence
Despite Miran’s appointment by Trump, he emphasized that he will act independently in his role. He revealed that Trump congratulated him on his swearing-in but did not pressure him to take any particular stance.
Miran also noted that the Fed environment has been “collegial,” even amid Trump’s ongoing push to remove Fed Governor Lisa Cook. This indicates that internal disagreements may be policy-driven rather than personal.
The Bigger Picture: U.S. Labor Market Risks
The Fed’s cautious stance reflects concern over striking the right balance between:
- Curbing unemployment risks without over-stimulating the economy.
- Ensuring that inflation stays close to the 2% target.
- Maintaining confidence in the Fed’s credibility and independence.
Powell reiterated that while the economy is not in crisis, any sudden increase in layoffs could present a serious challenge, as hiring momentum is already weak.
FAQs About Stephen Miran’s Inflation Comments
Q1: Who is Stephen Miran?
Stephen Miran is a Federal Reserve Governor appointed by President Donald Trump in 2025. He previously served as a top economic adviser in the Treasury.
Q2: What did Miran say about tariffs and inflation?
Miran stated that Trump’s tariffs have not caused “material inflation,” challenging the view that tariffs significantly raise consumer prices.
Q3: Why did Miran dissent from the Fed’s decision?
He wanted a half-point rate cut instead of the quarter-point cut, arguing that the labor market faces higher risks if borrowing costs remain restrictive.
Q4: How does Jerome Powell view the economy compared to Miran?
Powell sees the economy as stable, with unemployment at 4.3%, while Miran believes risks are accumulating and need to be addressed more aggressively.
Q5: What’s next for Miran and the Fed?
Miran will deliver a keynote speech in New York, where he will elaborate on his policy outlook. He is expected to continue advocating for faster and deeper rate cuts.
Conclusion
Stephen Miran’s debut as a Federal Reserve Governor highlights a sharp contrast within the central bank. While Chair Jerome Powell urges caution, Miran argues that tariffs are not fueling inflation and that stronger rate cuts are needed to protect jobs. As the U.S. economy faces mixed signals, Miran’s bold stance will likely influence future debates on monetary policy.
👉 Stay tuned for more updates on the Federal Reserve, U.S. economy, and global financial markets.