Stephen Miran, a Federal Reserve Board member, stated on Thursday that he is not concerned that easing monetary policy (such as rate cuts or loosening) would further drive up asset prices. These asset prices are already at historical highs and in some cases, even reaching new peaks.
He expressed no worries that the Fed adopting “monetary easing” (such as rate cuts) would escalate the already high asset prices like housing and the stock market. He emphasized that the most critical financial conditions are those related to housing, but currently, these conditions do not seem to be “loose,” with high mortgage rates, difficulty in home buying, and pressure on the housing market.
During the International Institute of Finance (IIF) meeting on Thursday, Miran told Reuters, “In my view, the financial conditions related to real estate are the most crucial for affecting the real economy, and that part does not appear loose at the moment. While some are concerned about soaring asset prices, my main focus is on inflation and full employment.”
Since joining the Fed last month, Miran has been advocating for significant rate cuts, citing that the Trump administration’s crackdown on immigration is curbing U.S. population growth, which in turn will dampen housing inflation and provide room for rate cuts by the Fed.
“Miran mentioned, “There are many factors driving the increase in asset prices. Monetary policy is one of them, but fiscal policy, regulatory policies, and global conditions are all playing a role—there are many different forces at play in driving asset prices.”
Miran plans to return to the White House as the chief economist after his term at the Fed ends early next year. At the last Fed meeting, he advocated for a half-point rate cut and supported a similar move to be taken at the upcoming meeting. Other Fed officials suggest smaller rate cuts to prevent a weakening labor market, a concern not explicitly emphasized by Miran in his remarks.
The Fed is set to convene for the next meeting on October 28-29, with market expectations leaning towards a quarter-point rate cut, positioning the policy rate in the range of 3.75% to 4.00%.
Stephen Miran is an American economist specializing in monetary policy and macroeconomics. On September 16, following President Trump’s nomination and Senate confirmation, he was sworn in as a Federal Reserve Board member, succeeding the previous board member Adriana Kugler, who resigned, with a term until January 31, 2026.
Miran held positions as the White House chief economist and worked with various international financial and policy research institutions, bringing a wealth of policy-making and financial market experience. He is known for his support of proactive monetary policies, believing that moderate rate cuts help promote economic growth and maintain full employment, while emphasizing that decisions should be based on comprehensive economic data analysis.
(This article referenced relevant reports from Reuters)