Fed’s Stephen Miran says he wants half-point interest rate cut this month

Stephen Miran – the newest Fed governor appointed by President Trump – said Thursday he plans to push for a half-point interest rate cut at the central bank’s meeting later this month.

Policymakers are largely expected to trim rates by another quarter point on Oct. 29, as they did last month.

But Miran has argued that a quicker rate-cut path is necessary as trade tensions and heightened economic uncertainty amplify risks to economic growth. 

“If monetary policy stays as restrictive as it is, and you have a shock like this hit the economy, it does materially increase the negative consequences of that shock,” he told Fox Business on Thursday.

Miran argued that Trump’s trade war with China over rare earths only makes the case for rate cuts more urgent.

Still, he conceded that policymakers will likely only slash rates by another quarter point.

“My view is that it should be 50” basis points, he told Fox Business. “However, I expect it to be an additional 25 and I think that we’re probably set up for three 25-basis-point cuts this year, for a total of 75 basis points this year.”

He argued that a hiring slump could potentially send the unemployment rate higher, in which case lower rates can help promote economic growth.

Central bankers cut rates by a quarter point last month, nodding to risks in the labor market. It was the first rate cut since December 2024.

But some policymakers have argued for a more cautious approach, as inflation remains stubbornly above the Fed’s 2% goal. 

US consumer inflation heated up to a 2.9% pace in August, according to the most recently available government data.

Fed Governor Christopher Waller, who is considered one of the frontrunners to take Chair Jerome Powell’s seat when it expires in May 2026, advocated for another quarter-point cut later this month.

“Based on all of the data we have on the labor market, I believe that the [Federal Open Market Committee] should reduce the policy rate another 25 basis points at our meeting that concludes Oct. 29,” Waller told the Council on Foreign Relations on Thursday.

“But beyond that point, I will be looking for how the solid GDP data reconcile with the softening labor market.”

Waller added that it’s important to avoid “rekindling inflationary pressure by moving too quickly and squandering the significant progress we have made taming inflation.”

“The labor market has been sending some clear warnings lately, and we should be ready to act if those warnings are validated by what we learn in the coming weeks and months,” Waller continued.

Meanwhile, the Bureau of Labor Statistics has delayed its inflation and jobs reports because of the government shutdown, which entered its sixteenth day on Thursday.

“It would be really helpful to have the economic data in order to be able to make the decisions we need to make,” Miran said.

“Certainly, we would want to be inspecting the economy for signs of moves lower in inflation, for signs of changes in the job market. But without those data, we still have to make a decision, anyway, and so we’ll have to rely upon our forecasts for doing so.”

Miran – who plans to return to his job as chief White House economist when his Fed term ends early next year – pushed for a half-point cut at last month’s meeting but was outvoted 11-1.

Last month’s quarter-point cut lowered the target range to 4% to 4.25%.