Federal Reserve Board Member Defends Rate cut, denies Trump Influence
WASHINGTON – federal Reserve Board member Christopher Miran publicly defended his vote to lower interest rates this week, asserting he received no direction from President Trump regarding his decision. The Federal Reserve on Wednesday reduced the benchmark interest rate to a range of 4% to 4.25%, the first change since Trump resumed office.
Miran was the sole member of the Reserve Council to advocate for a 50-basis-point reduction, a position that diverges from the consensus favoring a more gradual approach. He explained his rationale stems from a belief that inflationary pressures are waning, especially due to the impact of stricter immigration policies on housing demand, and that maintaining overly tight monetary policy risks hindering employment growth.”I do not see a reason to stay away from neutrality at the present time…The longer the monetary policy remains very tight, the increased risk of failure to achieve the authorization of employment,” Miran stated.
The rate cut followed concerns about a perhaps weakening labor market, despite ongoing inflation-some of which, the article notes, is linked to Trump-era customs duties. The Reserve Council anticipates inflation will remain above its 2% target at least temporarily for the remainder of the year. Miran,however,downplayed the impact of tariffs,emphasizing the influence of border policies.
Prior to the meeting, Miran confirmed he spoke with President Trump, but only to offer well wishes. He intends to publicly detail his reasoning in the coming weeks and months, stating he felt “owed to the world to explain the reason for the difference of my view.” Othre Trump-appointed officials on the central bank supported the rate reduction, alongside expectations for a more accommodative monetary policy throughout the year.
