NextFin news, WASHINGTON — On Monday, September 22, 2025, Stephen Miran, a newly appointed member of the Federal Reserve Board of Governors and a top economic adviser to President Donald Trump, publicly advocated for steeper interest rate cuts than those favored by his Federal Reserve colleagues.
Miran called for the central bank's key interest rate to be lowered from its current 4.1% level to approximately 2.5%, citing factors such as sharp declines in immigration, rising tariff revenues, and an aging population as reasons that justify a more accommodative monetary policy. This position marks a significant divergence from the views of the other 18 members of the Fed's rate-setting committee.
The Federal Reserve lowered interest rates by a quarter of a percentage point last Wednesday, September 17, 2025, the first cut since December 2024, with signals of up to two more cuts before year-end. However, Miran was the lone dissenting vote, advocating for a larger half-point cut.
Miran's appointment to the Fed has been controversial due to his simultaneous role as chair of the White House Council of Economic Advisers, a position he has not resigned from but taken an unpaid leave of absence. This dual role is unprecedented in the Fed's 90-year history and has raised concerns about the institution's independence from political influence.
His Senate confirmation was narrowly secured on September 15, 2025, by a 48-47 vote largely along party lines. Miran's term on the Fed board expires in January 2026, and he has indicated plans to return to the White House thereafter, though he may remain on the board until a successor is appointed.
During remarks to the Economic Club of New York, Miran emphasized that his monetary policy views differ from those of his colleagues, describing current policy as "very restrictive" and posing risks to the Fed's mandate of maximum employment. He argued that reduced immigration should ease housing demand and rental costs, lowering inflationary pressures, while tariff revenues could help reduce the federal deficit, lessening the need for high interest rates.
President Trump has repeatedly pressured the Federal Reserve to cut rates more aggressively, even calling for rates as low as 1.2%. Trump has also sought to remove Fed Governor Lisa Cook, who has legally challenged her dismissal, with the Supreme Court currently considering the case.
Miran stated that his policy decisions are made independently, asserting that Trump has not directed him to adopt any specific stance. "At the end of the day, I make my own analysis based on my own understanding of economics and how the economy works," Miran said.
The Federal Reserve Act and longstanding tradition emphasize the Fed's independence from the executive branch to ensure monetary policy decisions are based on economic data rather than political considerations. Miran's dual role and Trump's interventions have sparked debate about the future autonomy of the central bank.
Explore more exclusive insights at nextfin.ai.