Trump's New Fed Governor Stephen Miran Calls For Aggressive Rate Cuts, Says 'Restrictive' Policy Creates 'Material Risks' To Employment - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:S

Core Viewpoint - Stephen Miran, a member of the Federal Reserve Board, advocates for aggressive interest rate cuts, arguing that the current monetary policy is "very restrictive" [1][2]. Interest Rate Perspective - Miran believes the appropriate federal funds rate should be in the "mid-2 percent area," which is nearly two percentage points lower than the current rate, warning that inaction could jeopardize the Fed's employment mandate [2][6]. - He asserts that the real neutral rate of interest is "near zero," indicating that current policies are tighter than they appear due to various nonmonetary factors [3][5]. Economic Landscape Changes - Miran highlights recent policy changes, particularly in U.S. border policy, which he claims have reduced population growth and exerted downward pressure on rent inflation and the neutral rate [4]. - He also points to new tax and trade policies, including increased tariff revenue, which he estimates are enhancing national savings and consequently lowering the neutral rate [5]. Employment and Inflation Debate - Miran frames the discussion as a choice between maintaining the Fed's credibility in fighting inflation and protecting American jobs, warning that keeping interest rates too tight could lead to unnecessary layoffs and higher unemployment [6].