Trump's Fed appointee pushes for steeper rate cuts

Core Viewpoint - Stephen Miran, a Federal Reserve Board member appointed by President Trump, advocates for a significant reduction in the Fed's key interest rate from the current 4.1% to approximately 2.5%, highlighting a stark contrast with his colleagues [3][4]. Group 1: Economic Indicators - Miran attributes the need for a lower interest rate to several factors, including sharp declines in immigration, increased tariff revenue, and an aging population [3]. - He suggests that reduced immigration could lead to more available housing and lower rental costs, which would help alleviate inflationary pressures [7]. - Tariff revenues are projected to exceed $300 billion annually, which could contribute to deficit reduction and lessen the necessity for high benchmark interest rates to control inflation [7]. Group 2: Policy Implications - Miran describes the current monetary policy as overly restrictive, potentially hindering economic growth and posing risks to the Fed's mandate of maximizing employment [5]. - His perspective indicates a divergence from the consensus among the other 18 members of the Fed's rate-setting committee, marking an unusual level of disagreement [3][4]. Group 3: Personal Context - Miran's appointment has raised concerns regarding the independence of the Fed, as he continues to serve as a top economic adviser to the White House while on unpaid leave [4]. - His term on the Fed's board is set to expire in January, with indications that he may return to the White House afterward [4].