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Federal Reserve Governor Stephen Miran said on Wednesday that current short-term interest rates are higher than they should be and are putting unnecessary pressure on the U.S. economy.
In an interview with Yahoo Finance, Miran said he believes the Fed’s policy stance is “too restrictive” and that rates are “too far above where neutral rates would be.” He warned that keeping rates this high for too long could create avoidable risks, especially given the current state of the labor market.
Miran added that, unless something unexpected happens, he would likely support another rate cut at the Fed’s December meeting. The central bank’s benchmark rate is currently set between 3.75% and 4%.
He also called the latest ADP employment report a “welcome surprise.” The report showed private employers added 42,000 jobs in October, suggesting continued resilience in the job market. With the government still shut down, official economic data like payroll numbers have not been released, making private reports like ADP’s more important for policymakers.
The lack of government data has made it harder for Fed officials to assess the economy’s true condition. Fed Chair Jerome Powell said last week that while a December rate cut is possible, it is not guaranteed.
When asked about President Donald Trump’s proposed tariff plans that are currently under Supreme Court review, Miran said the uncertainty surrounding those trade policies could slow down economic growth.