Fed Governor Miran: The Case For Big Rate Cuts | Miran on Deterioration in Labor Market, the Neutral Rate of Interest, and Fed Balance Sheet Policy

Jack Farley interviews Federal Reserve Governor Stephen Miran on his dovish stance on monetary policy, including his dissents in recent FOMC meetings where he advocated for larger interest rate cuts. Miran explains his theoretical framework, emphasizing backward-looking inflation data, phantom imputed prices, a weakening labor market, and a rapidly declining neutral rate. He discusses the impact of population growth and trade policies, particularly tariffs, on the neutral rate, and shares his expectations for the December Fed meeting, anticipating a rate cut. The conversation also covers private credit concerns, balance sheet policies, and central bank independence, with Miran advocating for a focus on stable prices and maximum employment, while also touching on the need to provide adequate reserves to the banking system and his views on the Fed's balance sheet strategy.