Fed Governor Urges Swift Interest Rate Cuts Amid Trade Tensions
Federal Reserve Governor Stephen Miran is pushing for more interest rate cuts. He believes these cuts are urgent due to rising trade tensions between teh U.S. and China.
Miran spoke to CNBC, stating that the latest trade conflict adds new risks to the economy. He wants a 1.25 percentage point cut by 2025.The Fed already cut rates by 25 basis points in September.
His comments come before the Fed’s October policy meeting. The Fed hinted at more cuts before the U.S. government shutdown. The focus is now on the U.S. economy, signaling a dovish stance.
Miran’s call for rate cuts reflects growing economic uncertainty. He believes policymakers must address these risks.”The Chinese are backing out of previous deals,which adds to the uncertainty,” he explained.
Markets expect the Fed to cut rates again in october and December. Miran’s push for a 1.25 percentage point cut by 2025 aims to stabilize the economy amid these challenges.
