Fed governor Miran calls for large interest rate cuts to help economy

Federal Reserve governor Stephen Miran said the U.S. economy is “calling for large interest rate cuts” and warned that current monetary policy is “holding the economy back” by keeping borrowing costs too high and pushing the unemployment rate upward.

“I think the economy calls for large interest rate cuts to get monetary policy to neutral as quickly as we can. Monetary policy is exerting restriction on the economy. It’s holding the economy back. It’s pushing the unemployment rate gradually upward,” Miran said on “Mornings with Maria” Tuesday.

“And I don’t think that’s appropriate given the economic outlook,” he continued. “So I think it’s the right thing to cut interest rates rather quickly.”

Policymakers on the Federal Open Market Committee (FOMC) were divided at their late October meeting over whether there should be an additional rate cut at their next meeting in mid-December amid concerns about a softening labor market and persistent inflation.

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The Fed cut rates for the first time this year in September and followed that up with a second 25-basis-point cut in October, leaving the benchmark federal funds rate in a range of 3.75% to 4%.

Stephen Miran, governor of the U.S. Federal Reserve, during a television interview on the floor of the New York Stock Exchange (NYSE) in New York, on Nov. 10, 2025. (Getty Images)

Miran advocated for a series of 50 basis point cuts and an overall dovish stance moving forward, pointing to recent jobs numbers and low inflationary risks.

“I think what you’ll see on the rest of the committee is that the labor market data that we got recently, I hope, will move people in my direction of thinking it’s appropriate to continue cutting interest rates. I think that’s what the data called for,” he said, referencing the better-than-expected September jobs report.

“A lot of people, if you look at where their projections for the economy go, and what we call ‘the dots,’ they have us getting towards neutral rates. It’s just over the question of how quickly we get there. And I want to get there rather quickly because I don’t see an inflation problem,” Miran explained.

“In my mind, almost all of the inflation excess is a mirage. It’s due to supply and demand imbalances in the housing market… and because the monetary policy lags.”

However, current monetary policy still puts pressure on America’s workforce.

“We have to recognize that the unemployment rate has been drifting higher, and that is a function of monetary…