NextFin news, Federal Reserve Governor Stephen Miran publicly advocated for significantly lower interest rates during his first major speech on Monday, September 22, 2025, at the Economic Club of New York. Miran proposed a benchmark interest rate range of 2% to 2.5%, substantially below the current Federal Reserve target of 4% to 4.25%.
Miran's stance aligns with the White House's economic agenda under President Donald Trump, who has expressed a desire for the Federal Reserve to ease borrowing costs to stimulate growth. Miran, who is on temporary unpaid leave from his role as head of the White House Council of Economic Advisors, emphasized that maintaining short-term interest rates at current levels risks unnecessary layoffs and higher unemployment.
He explained that economic growth is expected to accelerate starting next year as the effects of a recently signed tax bill begin to benefit families and businesses. "I expect the second half of the year into next year to be better in terms of growth than the first half of this year, in large part because a lot of the effects of the tax bill are going to be kicking in," Miran said.
During a moderated question-and-answer session, Miran addressed concerns about political influence on the Federal Reserve. He downplayed President Trump's direct campaign to reshape the Fed's monetary policy, stating, "The president is entitled to his views on monetary policy. I think everyone's entitled to their views on monetary policy, and I'm delighted to hear views from all sorts." He added that he would form his own views independently based on economic analysis.
Miran also discussed his previous proposals for Federal Reserve reforms, including a recommendation to bar Fed governors from serving in the executive branch for four years to insulate them from political pressures. However, he clarified that he only took temporary leave from his White House role and would consider resignation only if he expected to remain in the Fed governor position beyond January.
The Federal Reserve's broader membership is currently anticipating up to three interest rate cuts over the next year, responding to signs of a weakening job market and economic uncertainty linked to trade policies. Miran's comments on Monday contribute to the ongoing debate about the appropriate monetary policy path amid these challenges.
Source: Quartz, reporting from New York City, September 22, 2025.
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