Miran Says Current Fed Policy Poses Risks to Labor Market

Group 1 - The appropriate Fed funds rate is estimated to be in the mid 2% area, which is nearly two percentage points lower than the current policy [1] - The Federal Reserve aims to promote price stability for the benefit of American households and businesses [1] - There are significant risks associated with maintaining a restrictive policy, particularly concerning the Fed's employment mandate [2] Group 2 - Current monetary policy is considered to be well into restrictive territory, with short-term interest rates being approximately two percentage points too tight [3] - The tight monetary policy could lead to unnecessary layoffs and higher unemployment rates [3]