Fed Rate Cuts Still on the Table
Global tensions are adding uncertainty to the economic outlook, but one Federal Reserve official says interest rate cuts still make sense.
WASHINGTON – Federal Reserve Governor Stephen Miran said Wednesday that he believes it remains appropriate to continue cutting interest rates, stating it is too early to assess the impact of war in the Middle East on the US economy.
"I believe it's appropriate to continue acting," Miran said in an interview on Bloomberg TV. "Thus far, the evidence from events over the weekend hasn't led me to change any of my forecasts for the labor market, for inflation."
Oil prices surged after the US and Israel launched attacks across Iran over the weekend. Investors marked down the odds of Fed rate cuts in 2026 following the strikes.
Miran said the labor market still requires additional support from monetary policy. "When you look at the totality of labor-market data, there's still evidence to me that it needs more support from monetary policy," he said.
The Bureau of Labor Statistics will publish a monthly report on employment for February on Friday.
Some Fed officials speaking this week have suggested the Middle East situation raises uncertainty over the outlook. Fed watchers have interpreted this as possibly keeping the central bank on hold for longer.
Before the strikes on Iran, several Fed officials had highlighted signs of stabilization in the labor market, suggesting they would prefer to wait for more signs that inflation is falling back to the Fed's 2% goal before authorizing additional rate cuts. Miran continued to take an opposing view.
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