Deregulation: Miran Signals a Path to Lower Prices

Federal Reserve Governor Stephen Miran underscored the powerful role deregulation is playing in reshaping the U.S. economy. Speaking recently, he described last year’s wave of regulatory easing as “substantial” and suggested that it will continue in the years ahead.

Miran explained that deregulation acts as a positive supply shock, boosting productivity and expanding the economy’s capacity. By reducing unnecessary rules, businesses gain efficiency, which helps ease price pressures. He noted that this dynamic provides another reason for the central bank to consider cutting interest rates, as deregulation itself works to lower inflation.

Looking ahead, Miran suggested that as much as 30% of existing regulations could be eliminated by 2030. Such a shift, he argued, might reduce inflation by about half a percentage point annually, offering meaningful relief to households and businesses alike.

At the same time, he cautioned that if central banks fail to adjust policy to accommodate these structural changes, monetary conditions could become too tight. That, in turn, would risk slowing growth unnecessarily, even as deregulation is already working to ease inflationary pressures.

On the currency front, the U.S. dollar showed mixed performance against major peers, strengthening against the Australian dollar while slipping slightly against the euro, pound, and yen. These moves reflect the broader market’s balancing act between regulatory reforms, monetary policy expectations, and global economic trends.

Miran’s remarks highlight a pivotal moment: deregulation is not just a political or administrative shift, but an economic force that could redefine inflation and growth dynamics for years to come.