Fed Governor Miron Argues for 100bp Rate Cut

Federal Reserve Governor Steven Miron has stated that the benchmark interest rate should be cut by an additional 1 percentage point (100 basis points). In a March 30 (local time) interview with CNBC, Governor Miron assessed that the current price situation is not at a dangerous level that warrants rushing monetary policy changes. He argued that if there are no signs that the surge in energy prices will lead to long-term inflation, the Fed should ignore it and proceed with interest rate cuts.

"I would be concerned if we saw evidence of a wage-price spiral or if inflation expectations began to rise, but we don't have that evidence yet," he said. He emphasized that monetary policy operates with a lag and is not a tool designed to respond to short-term market fluctuations.

Governor Miron's term as a Fed governor has already expired. However, due to the pending confirmation of former Fed Governor Kevin Warsh, who was nominated as the next Fed Chair, Miron is currently continuing to perform his duties.