Bloomberg Talks Fed Governor Stephen Miran Talks Outlook for Inflation, Rates
Nov 21, 2025
Stephen Miran, Federal Reserve Governor, discusses crucial economic trends with insights from his dovish perspective. He highlights that recent labor market signals suggest a need for rate cuts and argues that current inflation readings can be misleading. Miran emphasizes the importance of a forecast-dependent policy rather than being overly reactive to past data. He also touches on the impacts of high stock markets and tight housing conditions on policy, reinforcing the Fed's dual mandate to balance employment with price stability.
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Measured Inflation Includes A Statistical Mirage
- Much of the measured inflation over two percent is a statistical artifact rather than fresh supply-demand imbalance.
- Stephen Miran argues policy shouldn't force job losses to correct quirks in measurement.
Set Policy For The Forecast, Not The Past
- Set monetary policy based on forecasts for 12–18 months ahead, not backward-looking data alone.
- Use incoming data to update forecasts, but remain forecast-dependent rather than excessively data-dependent.
Supply Gains Reduce Need For Tight Policy
- Supply-side improvements from deregulation and other reforms ease price pressures without requiring tighter monetary policy.
- Miran sees these supply boosts as reducing the need for hawkish policy even if GDP support rises.