Fed risks recession without more rate cuts: Miran

Federal Reserve Governor Stephen Miran said the US central bank risks sparking a recession unless it continues lowering interest rates next year.
 

In an interview with Bloomberg TV on Monday, Miran said that labor market indicators are increasingly pointing toward further monetary easing, noting that failing to follow this path could carry rising risks. However, he stressed that he does not expect an imminent economic contraction.
 

Regarding labor market indicators, Miran indicated that the unemployment rate has risen more than previously expected, adding that this places additional pressure on the Federal Reserve to continue lowering interest rates at a time when the labor market is still showing signs of gradual weakening, despite ongoing concerns about inflation.
 

After policymakers cut interest rates three times by a total of 75 basis points between September and December, Miran noted that the need for a 50-basis-point cut at the January meeting has become less pressing, and said he has not yet made a final decision on the matter.
 

Since joining the Board of Governors in September, following the resignation of Adriana Kugler, Miran has called for deeper cuts in borrowing costs.
 

As for his future role in monetary policy decision-making, Miran said he is likely to remain in his position after his term ends on January 31, until the Senate confirms his successor.