The current policy stance risks slowing U.S. growth, Federal Reserve Governor Stephen Miran said in a speech. He argued rates may be tighter than necessary despite supportive measures from the Trump administration, including tax cuts. Speaking at the Federal Reserve Bank of Dallas, Miran warned that “the biggest risk… is that we’re misconstruing just how tight monetary policy is,” and reiterated his call for further rate cuts. Miran said he does not see a significant inflation threat, noting that very low shelter inflation could offset price pressures elsewhere. “I have a hard time being concerned about inflation,” he said. As long as inflation remains contained, he believes the Fed should continue supporting the labor market with looser policy, especially as supply growth outpaces demand, allowing the economy to expand without reigniting price pressures.
