Fed Governor Stephen Miran reiterated his dovish stance in remarks to Bloomberg TV, arguing that it is premature to reassess the policy outlook in response to surging oil prices. While acknowledging that inflation risks have become “a little more concerning,” Miran emphasized that policymakers should “wait for all the information to come in” before adjusting their baseline expectations.
Miran maintained that central banks should traditionally look through oil price shocks, signaling that his prior policy view remains intact. “It’s just still premature to have a clear view about what this is going to look like as you look 12 months out,” he said. His outlook continues to favor gradual rate cuts despite the recent rise in energy prices.
Importantly, Miran highlighted growing concerns around the labor market, arguing that unemployment risks are rising alongside inflation risks. He noted that the oil shock acts as both a negative supply and demand shock, weighing on economic activity. “The labor market still can use additional support,” Miran said, explaining his dissent at the last FOMC meeting in favor of a 25bps cut and reinforcing his call for further easing.
