Fed’s Stephen Miran Says He’s ‘Sanguine’ on Inflation Outlook as He Backs More Rate Cuts

Federal Reserve Governor Stephen Miran has again suggested that he isn’t worried about the inflation outlook as he continues his push for more aggressive Fed rate cuts. This comes as other Fed officials raise concerns about inflation, alluding to it as a reason why they may not support further rate cuts this year, although the crypto market expects more cuts.

Miran Positive About Inflation Outlook Amid Support For More Fed Rate Cuts

During a fireside chat at the MFA Policy Outlook, the Fed governor said that he is more sanguine on the inflation outlook than some of his colleagues. He further opined that monetary policy should be forward-looking, suggesting that there was no indication of rising inflation.

As CoinGape earlier reported, Miran has called for a series of 50 basis points (bps) Fed rate cuts to help bring the policy rate to neutral. Back then, he mentioned how his colleagues were too concerned about the Trump tariffs and how this could lead to rising inflation.

However, he noted that the data doesn’t point to that happening and suggested that they should be more concerned about the downside risks in the labor market. Meanwhile, during his remarks at the MFA Policy Outlook, Miran opined that his best attempt at a real neutral rate is 0.5%, further driving home his push for aggressive rate cuts.

The Fed Governor also warned about additional restrictiveness going forward, noting that it poses risks for the economy. Miran has already argued that the current monetary policy is too restrictive and that his colleagues need to move quickly to make additional Fed rate cuts to avoid any further slowdown in the economy.

Fed Officials Remain Divided Over Monetary Policy

The Fed officials remain divided over monetary policy and whether they should make a rate cut at the upcoming FOMC meeting. While Fed Governors Chris Waller, Michelle Bowman, and Stephen Miran argue for lower rates over the labor market concerns, others, including Fed Chair Jerome Powell, have warned about rising inflation and the Trump tariffs.

As CoinGape reported, Kansas City Fed President Jeffrey Schmid yesterday signaled his opposition to further Fed rate cuts, stating that inflation was too high. He also revealed that he supported a cut at the September meeting as an “appropriate risk-management strategy.”

The Fed will release the September FOMC minutes tomorrow, which will provide further insight into the current stance on monetary policy and whether other members also voted in favor of the cut as a risk management measure.

Despite several Fed officials raising concerns about inflation, the market is still pricing in another Fed rate cut at the October FOMC meeting. There is currently a 94.6% chance that the Fed will lower rates by 25 basis points at the October 29 meeting. The Bitcoin price has also rallied to a new all-time high (ATH) above $126,000 as the market prices in the cut.