Fed’s Miran Makes an Outlier’s Argument for Cutting Rates

The Federal Reserve’s newest policymaker, appointed by President Donald Trump, laid out his argument for aggressively lowering interest rates on Monday, presenting a view that aligns with the president’s demands but which makes him an outlier at the central bank.

In his first policy speech since joining the Fed, Governor Stephen Miran argued that the neutral rate of interest — where the policy rate neither stimulates nor weighs on the economy — has been pushed lower this year by tariffs, immigration restrictions and tax policy.

That means interest rates should be much lower to prevent damaging the economy, he said. ...