NextFin news, Federal Reserve Governor Stephen Miran expressed on Thursday, September 25, 2025, his desire for the U.S. central bank to approach the neutral interest rate within the coming six months. He made these remarks during an interview with Fox Business.
Miran explained that his view on potential rate cuts is based on expectations that the neutral rate is being pushed lower due to factors such as tax policy changes and immigration trends. He emphasized the need for the Federal Reserve to be forward-looking in response to ongoing economic shifts.
He also noted that he is "probably more sanguine" about economic growth prospects compared to many of his colleagues at the Fed. Miran highlighted that there is "no concrete evidence" that tariffs are currently driving inflation upward, a concern that appears to influence other policymakers.
Regarding inflation, Miran expects shelter inflation to decline over the next six to twelve months. He suggested that the current monetary policy stance is approximately 200 basis points too restrictive and advocated for gradual removal of this restrictiveness in half-point increments.
Miran warned that the economy is vulnerable to downside shocks because of the tight monetary policy and stressed the importance of the Fed exiting its restrictive stance if his views on tariffs and housing hold true.
He also mentioned that deregulation in the energy and financial sectors could boost the economy's potential growth rate, and he foresees a decent chance of 3% growth in the second half of 2025 and into 2026.
On the topic of tariffs, Miran stated there is no material evidence supporting tariff-driven inflation, although this concern seems to be holding back some Fed members from moving more urgently.
His comments reflect a more dovish tone relative to some other Fed officials, with an emphasis on moving policy closer to neutral to support sustainable economic growth.
These remarks were reported by Reuters and covered by FXStreet and BreakingTheNews.net on September 25, 2025.
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