Fed Governor Stephen Miran said today that two more interest rate cuts this year “sound realistic”, in light of continued disinflation and growing downside risks.
Speaking at a CNBC forum, he said it was now “even more urgent to get to the neutral rate quickly”, arguing that the Fed’s priority should be to adjust policy preemptively as economic risks mount.
Miran added that the balance of risks had worsened compared to just a week ago. Recent developments in U.S.–China relations could play a meaningful role in shaping the economic outlook, warning that policymakers must now “think about the introduction of a new tail risk.”
