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Fed Governor: This is an ‘INAPPROPRIATE COMPARISON'
Youtube·2025-09-19 21:30

Core Viewpoint - The newly confirmed Federal Reserve Governor, Steven Myron, advocates for a 50 basis point interest rate cut, citing disinflationary forces that will likely bring inflation down in the near term [1][2]. Disinflationary Forces - Myron identifies lower immigration as a significant disinflationary factor, noting that the closure of borders has led to a decrease in shelter inflation due to a relatively fixed supply of housing [3][4]. - He argues that there is no material evidence of inflation driven by tariffs, stating that import-intensive core goods have not inflated more than overall core goods [5][8]. Economic Outlook - Myron expresses a positive economic outlook for the second half of the year, attributing previous uncertainties to tax hikes and trade policy changes that have since been resolved [17][18]. - He believes that the incentives for investment from full expensing in the tax cuts will significantly boost economic growth without leading to inflation [19][20]. Monetary Policy Perspective - Myron emphasizes that the current monetary policy is restrictive and poses risks to employment, advocating for a quicker return to a neutral policy stance [19][20]. - He suggests that the Federal Reserve's traditional growth forecast of 2% is overly conservative and does not account for potential growth driven by supply-side policies [12][15]. Tariff Inflation Debate - Myron notes a shift in perception regarding tariff-driven inflation, indicating that many forecasters are beginning to agree that any inflationary impact from tariffs is less significant than previously thought [21][22].