NextFin news, On Thursday, September 25, 2025, Stephen Miran, a member of the Federal Reserve Board of Governors, spoke publicly about the ongoing challenges within the Federal Reserve regarding monetary policy decisions, particularly interest rate cuts. The interview took place on Fox Business during the program 'Mornings with Maria.'
Miran acknowledged that some of his Federal Reserve colleagues remain preoccupied with the effects of tariffs imposed during former President Donald Trump's administration. He indicated that these tariffs continue to influence their hesitation to reduce interest rates, despite other economic indicators.
He further elaborated that the tariffs have contributed to increased material input costs, notably in sectors such as home building, where costs have risen by over 6 percent. This increase affects revenue and pricing within the industry, complicating the Federal Reserve's inflation assessment.
Regarding inflation, Miran stated that there is no clear evidence of tariff-driven inflation in the broader economy, a point that contrasts with some data from the Bureau of Labor Statistics showing a 2.9 percent year-over-year Consumer Price Index increase as of August 2025.
In addition to tariffs, Miran discussed the impact of artificial intelligence on the labor market, acknowledging data that suggests AI could lead to significant job displacement. He described the recent population surge in the United States as a neutral economic shock, akin to a weather event, which has contributed to economic growth by filling low-wage jobs in sectors like construction, agriculture, and childcare.
Miran also touched on the potential economic consequences of the Trump administration's mass deportation plans, which could reduce the labor force by over one million people and potentially decrease GDP by 1 to 2 percent by 2026, according to models from the Penn Wharton Budget Model.
The interview provided insight into the Federal Reserve's internal deliberations on monetary policy amid complex economic factors, including tariffs, demographic changes, and technological advancements. Miran's comments reflect ongoing debates about the appropriate timing and scale of interest rate adjustments to balance inflation control with economic growth.
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