Fed Cuts Rates; Miran Urges Steep Cuts

The Federal Reserve on Sept. 16–17 cut its policy rate by 25 basis points to 4.00%–4.25% and signaled some gradual easing may follow. Newly confirmed Governor Stephen Miran — a Trump appointee on unpaid leave from the White House Council of Economic Advisers — was the lone dissenter, voting for a 50‑basis‑point cut and saying the appropriate federal funds rate is in the mid‑2% range because policy is “very restrictive.” Miran argued that tariffs, immigration and tax‑policy changes have pushed the neutral rate lower and warned that leaving policy nearly two percentage points too tight risks layoffs and higher unemployment. His views align with President Trump's push for faster cuts and have unsettled some economists who warn about threats to Fed independence; Miran says he was not directed and his Fed term is temporary. Most other Fed officials remain more cautious, with the median projection pointing to roughly a half‑percentage point of additional cuts in 2025.