Trump's Fed pick doubles down on calls to aggressively cut interest rates

Core Viewpoint - Stephen Miran, a new appointee to the Federal Reserve's interest-rate-setting board, advocates for more aggressive interest rate cuts, suggesting rates should be below 3% by year-end [2][6]. Interest Rate Decisions - The Federal Reserve recently cut interest rates by a quarter point, bringing them to a range of 4% to 4.25%, the lowest since early 2023. Miran was the only voting member to oppose this decision, advocating for a half-point cut instead [1]. Economic Analysis - Miran believes that concerns over inflation due to tariffs are overstated, arguing that small price changes in certain goods do not warrant significant worry. He predicts that exporters will lower prices, and he expects a cooling in the housing market due to a declining population influenced by immigration policies [2][4]. - In contrast, Fed Chair Jerome Powell acknowledges that higher tariffs have begun to increase prices in some categories, but the overall impact on economic activity and inflation remains uncertain [3]. Inflation Targeting - The Federal Reserve has maintained a target inflation rate of 2%, which has not been achieved since 2021. Miran views this target as overly restrictive and believes that precise inflation targets can lead to excessive micromanagement [5][6]. Role and Influence - Miran is positioned as an economic advocate for Trump within the Fed, being the first governor to serve on the board while also holding a role in the executive branch in nearly a century. He is currently on leave from his role as chair of Trump's Council of Economic Advisers [6]. - Miran emphasizes his independence in decision-making, stating that he will not conform to consensus for its own sake and will vote according to his beliefs [8].