Miran says more than 100 bps cut needed in 2026

Federal Reserve headquarters

Federal Reserve Governor Stephen Miran said on Tuesday that the Federal Reserve needs to cut interest rates this year well over 100 basis points to keep the economy moving forward.

"I think policy is clearly restrictive and holding the economy back," Miran said in an interview with the Fox Business channel.

"I think that, you know, well over 100 basis points of cuts are going to be justified this year," he added.

Miran said underlying inflation is basically at the Fed's 2% target, expecting the economy to grow robustly this year. He further argued that a failure by the Fed to lower short-term borrowing costs could upend that outlook.

Meanwhile, Miran said he did not believe he was a contender to succeed Fed Chair Jerome Powell, whose term as central bank chief ends in May. "It's not something I put myself forward for. I think the president has a slate of extremely qualified candidates in front of him," he said.