Federal Reserve Governor Stephen Miran advocated on Friday for further interest rate cuts after a weak February jobs report, suggesting the central bank should prioritize bolstering the labor market over inflation concerns.
Miran's comments followed the Bureau of Labor Statistics' report of a 92,000 drop in nonfarm payrolls. In a CNBC interview, he emphasized the need for monetary policy to support employment.
"I think that we don't have an inflation problem," Miran stated on CNBC's "Money Movers" show. "The labor market needs more accommodation from monetary policy. Maintaining a modestly restrictive monetary position instead of a neutral stance is not ideal. A stance near neutral is more appropriate."
Currently, the Fed's target for its key interest rate is between 3.5% and 3.75%, after three consecutive quarter-point cuts in late 2025. Miran suggests that a rate close to neutral, about one percentage point lower, would be more suitable. The December consensus among Fed officials positioned neutral at around 3.1%, indicating the possibility of two additional cuts.
Miran contended that persistently high inflation is more reflective of measurement methods by the Commerce and Labor departments rather than actual pressures. He highlighted that portfolio management fees have increased alongside rising stock markets, skewing inflation figures.
The recent escalation in oil prices due to the Iran conflict is less troubling, Miran noted, as the Fed typically does not react to such temporary inflation boosts. "Core inflation, excluding energy prices, is more predictive of medium-term inflation trends," he explained.
Having dissented in all Federal Open Market Committee meetings he's attended since his nomination by President Donald Trump, Miran has advocated for more aggressive half-point cuts, differing from the committee's quarter-point reductions. In January, when no cut was made, he favored a quarter-point reduction.
On the prospect of another dissent, Miran said, "I hope not, but that would be up to my colleagues. I aim for us to vote for a cut."
Miran's appointment filled an unexpired term after Adriana Kugler's resignation in August 2025. Though the term ended in January, Miran remains in place until a successor is named. President Trump has nominated Kevin Warsh as the potential replacement for current Fed Chair Jerome Powell, whose term concludes in May.
"I will be at the meeting in a couple of weeks, and after that, I will take it a day at a time," stated Miran.