Fed should deliver big rate cuts this year, Miran says

Federal Reserve Governor Stephen Miran said he expects well over 100 basis points of rate cuts this year and that underlying inflation is near the Fed's 2% target; his term at the Fed ends January 31.

Federal Reserve Governor Stephen Miran said on Tuesday that the Fed should move to cut interest rates aggressively this year. He told Fox Business he believes policy is currently restrictive and that well over 100 basis points of cuts will be justified. Miran said underlying inflation is basically at the Fed's 2% target and he expects robust economic growth. His term as a Fed governor ends January 31. Key points: - Miran said policy is "clearly restrictive" and argued for well over 100 basis points of rate cuts this year. - He said underlying inflation is basically at the Fed's 2% target and that the economy could grow robustly if rates are eased. - Miran is serving at the Fed while on leave from his role as a top economic adviser to President Donald Trump. - He dissented against the December 25-basis-point cut and had favored a 50-basis-point reduction instead. - Fed officials lowered rates three times last year and have currently penciled in one rate cut for this year, a projection that differs from Miran's view. Summary: The comments highlight a difference of opinion within the central bank about how quickly and how much to ease policy, with Miran calling for much larger cuts than the Fed's current projection of one cut this year. Undetermined at this time.