Bloomberg Talks Federal Reserve Governor Stephen Miran Talks Fed Decision
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Nov 3, 2025 Federal Reserve Governor Stephen Miran shares insights into recent monetary decisions, advocating for a 50 basis point rate cut to move towards a neutral policy stance. He discusses the complexities of financial market signals influenced by factors like AI. Miran highlights that tighter conditions in housing and private credit may not reflect equity market optimism. He also emphasizes the challenge of government shutdowns on data reliability, underlining potential risks from private credit distress.
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Fed Policy Is Too Restrictive
- Stephen Miran argues current Fed policy is too restrictive and neutral is well below current rates.
- He warns prolonged restrictiveness raises the risk that policy itself causes an economic downturn.
Market Moves Don’t Equal Policy Stance
- Miran cautions against inferring policy stance from broad market moves because many factors drive markets beyond monetary policy.
- He highlights housing and private credit as financial conditions that matter more for cyclical activity and look tighter.
Passive Tightening Through Neutral Rate Shifts
- Miran explains 'passive tightening' occurs when neutral rates fall while policy rates stay the same.
- He links recent shifts in neutral to shocks like population changes and fiscal deficits that flipped neutral sharply this year.