JUST IN: Fed Governor Stephen Miran Demands a 50 bps Coup - Because Why Go Small When You Can Go Over the Top?
In what’s rapidly becoming the most eyebrow-raising bit of central banking theater this year, Federal Reserve Governor Stephen Miran has loudly called for aggressive interest rate cuts -to the tune of 50 basis points at a crack. That’s right: half a percentage point. The move has triggered looks of confusion (and mild panic) from his more cautious Fed peers.
Miran, freshly confirmed in September 2025 (by a narrow 48–47 vote), didn’t arrive playing nice. He dissented in the latest rate decision, insisting that lowering rates by a mere 25 basis points was insufficient and dangerously timid. He argues that the so-called “neutral rate” has shifted downward - thanks, in his mind, to factors like immigration policy, tariff revenue, and demographic change - making the Fed’s current settings overly restrictive.
Miran vs. The Fed: A Battle of Monetary Showmanship
Before you start drafting hero posters for Miran, note that the rest of the Fed isn’t exactly queuing behind him with “Hell Yes” signs. Fed Chair Jerome Powell and many regional Fed presidents remain cautious, pointing out that inflation still hasn’t settled comfortably at 2 %, especially in the service sector. Miran insists he’s not wildly divergent - he just wants to get there faster. Translation: “Being bold” masquerading as “being pragmatic.”
Critics, meanwhile, are pointing out that skipping gradualism might be a one-way ticket to inflation flare-ups, market instability, and a credibility hit for the Fed.
So What’s at Stake ?
- Jobs vs. inflation: Miran argues that keeping rates too high risks undermining the labor market and stifling growth.
- Neutral rate redefinition: If Miran’s assumptions about a lower neutral rate are wrong, the Fed could overshoot and make borrowing too cheap again.
- Political optics & Fed independence: Miran’s previous role as Trump’s economic adviser raises questions about the line between policy and politics.
FAQs
Q: Who is Stephen Miran and what is his role at the Fed?
A: Stephen Miran is a U.S. economist newly appointed to the Federal Reserve Board of Governors in September 2025. He was formerly the Chair of the Council of Economic Advisers under President Trump.
A: Stephen Miran is a U.S. economist newly appointed to the Federal Reserve Board of Governors in September 2025. He was formerly the Chair of the Council of Economic Advisers under President Trump.
Q: Did Miran really propose a 50 bps rate cut?
A: Yes he dissented at the recent Federal Open Market Committee (FOMC) meeting in favor of a 50 basis point cut, rather than the 25 basis points the committee adopted.
A: Yes he dissented at the recent Federal Open Market Committee (FOMC) meeting in favor of a 50 basis point cut, rather than the 25 basis points the committee adopted.
Q: Why 50 bps? What’s his reasoning?
A: Miran argues the neutral interest rate has fallen due to structural shifts (e.g. immigration, tariffs, demographics), making the Fed’s policy more restrictive than it appears.
A: Miran argues the neutral interest rate has fallen due to structural shifts (e.g. immigration, tariffs, demographics), making the Fed’s policy more restrictive than it appears.
Q: Are other Fed officials backing him?
A: Not quite. The rest of the Fed, including Powell and regional presidents, are much more cautious. Some support incremental cuts or remain wary because inflation is still sticky.
A: Not quite. The rest of the Fed, including Powell and regional presidents, are much more cautious. Some support incremental cuts or remain wary because inflation is still sticky.
Q: What are the risks of cutting too aggressively?
A: Potential overheating, inflation rebound, loss of monetary credibility, asset bubbles, and the need for sudden policy reversals.
A: Potential overheating, inflation rebound, loss of monetary credibility, asset bubbles, and the need for sudden policy reversals.
Q: Does Miran’s appointment raise concerns about Fed independence?
A: Many observers think so. Miran’s prior role as Trump’s adviser and the overlap raise eyebrows about mixing politics and monetary policy.
A: Many observers think so. Miran’s prior role as Trump’s adviser and the overlap raise eyebrows about mixing politics and monetary policy.
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