Fed's Stephen Miran says he wants half-point interest rate cut this month

Core Viewpoint - Stephen Miran, the newly appointed Fed governor, advocates for a half-point interest rate cut due to trade tensions and economic uncertainty, although a quarter-point cut is more likely at the upcoming meeting [1][2][3]. Interest Rate Cuts - Miran plans to push for a 50 basis point cut, while expecting a 25 basis point reduction, predicting a total of three 25 basis point cuts this year, amounting to 75 basis points [3][5]. - The Federal Reserve cut rates by a quarter point last month, marking the first reduction since December 2024, with the current target range set at 4% to 4.25% [4][14]. Economic Context - The U.S. consumer inflation rate rose to 2.9% in August, complicating the decision-making process for policymakers [6]. - Fed Governor Christopher Waller supports another quarter-point cut, emphasizing the need to balance economic growth with inflation control [6][7]. Labor Market Concerns - There are warnings from the labor market that a hiring slump could increase unemployment, suggesting that lower rates could stimulate economic growth [3][10]. - Policymakers are cautious due to persistent inflation above the Fed's 2% target, leading to a divided opinion on the pace of rate cuts [4][11]. Data Availability Issues - The Bureau of Labor Statistics has delayed inflation and jobs reports due to a government shutdown, which hinders timely economic decision-making [12]. - Miran expressed the necessity of having economic data to inform decisions, indicating reliance on forecasts in the absence of current data [13].