Fed’s Miran Says Inflation Is Easing, Backs Continued Rate Cuts

Federal Reserve Governor Stephen Miran expressed optimism about the U.S. inflation outlook, stating that price pressures are steadily declining and that maintaining the current path of rate cuts is the right approach. His comments signal confidence that the central bank’s policy adjustments are beginning to show results after months of persistent inflation concerns.

Miran emphasized that some policymakers continue to rely on outdated inflation data, while more recent figures clearly indicate a cooling trend. He argued that the Fed must stay forward-looking and responsive to current economic conditions rather than being guided by lagging indicators.

Highlighting the state of the labor market, Miran noted that the unemployment rate has edged higher and that the U.S. economy is not yet at maximum employment. He said this softening in the job market makes it “imperative to ease policy” to support growth and maintain stability.

Despite differences within the Federal Open Market Committee about the pace of future rate cuts, Miran underscored that all recent data since September points toward the need for continued easing. He added that balance sheet decisions should remain separate from broader monetary policy discussions.

Following his remarks, the U.S. dollar held steady against most major currencies as investors weighed the likelihood of further rate reductions. Miran’s comments reinforced market expectations for a December cut, suggesting that the Fed remains committed to guiding inflation lower while cushioning the economy from rising joblessness.