How Miran''s Can Opener Transforms the Fed

The September FOMC meeting concluded with the Fed opting for a quarter-point rate cut. Newly appointed Fed Governor and Trump ally Stephen Miran dissented and voted for a half-point cut. More astoundingly, the dot plot showed an outlier calling for a Fed Funds rate below 3% in 2025, which requires 1.25% in rate cuts over the next two meetings. While the dots are anonymous, the mostly likely source is Stephan Miran.

Fed Chair Powell described monetary policy in a recent speech as “no risk free path” because of the upside risks to inflation and downside risks to employment. How can Miran justify his off-the-charts level of dovishness against this economic backdrop?

The full post can be found here.