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Investing.com -- Federal Reserve Board of Governors member Stephen Miran stated Tuesday that the U.S. economy requires "large interest rate cuts" and expressed hope that upcoming jobs data would persuade other Fed officials to reduce rates.
In comments made to Mornings with Maria on Fox Business, Miran attributed rising unemployment to overly restrictive monetary policy, saying, "Unemployment rate rising because monetary policy is too tight."
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The Fed official emphasized that the central bank should move quickly to reach a neutral interest rate and directly stated, "I don’t see an inflation problem." While acknowledging concerns about the higher cost of living, Miran noted that Fed policy needs to be forward-looking.
Regarding the Fed’s balance sheet, Miran expressed interest in shifting more toward Treasury bills. He explained that the size of the balance sheet is influenced by regulatory decisions and voiced hope that lighter regulations would enable a smaller Fed balance sheet.
Miran also commented on tariffs, stating they increase national savings and reduce the neutral interest rate. He indicated there are reasons to be more optimistic about the economy in 2026 and specifically mentioned that "we need relief on mortgage rates."