Federal Reserve Governor Stephen Miran expressed on Friday that the disappointing February jobs report strengthens the case for further interest rate reductions by the central bank. After the Bureau of Labor Statistics revealed a drop of 92,000 in nonfarm payrolls, Miran emphasized during an interview on CNBC that the Fed's focus should shift more towards the labor market rather than inflation concerns.
"I think that we don't have an inflation problem," Miran stated on the "Money Movers" show. "I think that the labor market can benefit from more accommodation through monetary policy. Maintaining a modestly restrictive stance instead of a neutral one doesn't seem appropriate. A closer approach to neutral appears suitable."
Currently, the Fed's primary interest rate range is between 3.5% to 3.75%, following three consecutive quarter-point rate cuts towards the end of 2025. Miran suggests that a rate closer to neutral, which he estimates to be about a full percentage point lower, is ideal. During the December meeting, Fed officials had a consensus that neutralâa level neither constraining nor stimulating the economyâwas around 3.1%, hinting at the need for two more reductions.
Miran has long argued that persistent high inflation numbers are more a reflection of measurement methods by the Commerce and Labor departments rather than genuine underlying pressures. He cited factors such as portfolio management fees that have escalated alongside a generally higher stock market. These fees, often charged as a percentage of assets, increase in dollar value when markets rise, despite unchanged service rates.
The recent hike in oil prices and the associated increase at the gas pump due to the Iran conflict are less concerning, according to Miran. "Typically, the Federal Reserve doesnât react to such oil price hikes. It raises headline inflation, but it's usually a one-time shock," he noted. "Core inflation, which excludes energy prices, is generally more telling of medium-term inflation trends than headline inflation."
Miran has repeatedly dissented at the Federal Open Market Committee meetings he's attended since September after being nominated by President Donald Trump. Unlike the quarter-point cuts adopted by the committee, he advocated for more forceful half-point reductions. In January, when the FOMC chose not to cut rates, Miran favored a quarter-point reduction.
When asked if he might dissent again, he responded, "I hope not, but that will depend on my colleagues. Hopefully, we vote for a cut."
Miran was appointed to fill the unfinished term of Adriana Kugler, who stepped down in August 2025. While that term ended in January, Miran continues in the role until a successor is confirmed. President Trump nominated Kevin Warsh as a potential replacement for the current Fed Chair Jerome Powell, whose term concludes in May.
"I will attend the upcoming meeting, and thereafter, I'll take things day by day," Miran commented.