Federal Reserve Governor Stephen Miran indicated on Monday that the central bank remains open to cutting interest rates by approximately one percentage point this year, reinforcing his stance during an appearance on CNBC’s ‘Squawk on the Street.’ Miran’s comments come as the Fed weighs slowing inflation against persistent economic growth.
Analysts note that Miran’s remarks align with recent Fed communications suggesting a cautious approach to monetary policy. ‘The data-dependent Fed is likely to proceed carefully,’ said a senior economist at a major financial institution, speaking on condition of anonymity due to the sensitivity of the topic.
Market reactions were muted, with traders already pricing in a high probability of rate cuts later this year. However, some experts warn that premature easing could reignite inflationary pressures. ‘The Fed must balance growth and inflation risks,’ noted a Bloomberg Markets analyst.
Looking ahead, investors will closely monitor upcoming employment and inflation reports for further clues on the Fed’s next moves.