Federal Reserve Board of Governors member Stephen Miran said on Thursday that the US central bank should ideally cut interest rates by 50 basis points, though he projected the next rate reduction will likely be 25 basis points.
Speaking at the Institute of International Finance Annual Membership Meeting, Miran noted that renewed US-China trade tensions have “brought back uncertainty” to the global economic outlook. However, he clarified that he does not expect a recession to result directly from the tariff dispute between Washington and Beijing.
Miran said that tariffs may have had an impact on US inflation, though the effect is not yet “visible.” He forecast economic growth of around 2% for the rest of 2025, cautioning that next year’s progress will depend heavily on whether trade tensions ease.
The comments come as the Federal Reserve faces increasing pressure to adjust its monetary policy amid slowing growth and inflation uncertainties, with markets widely expecting another small rate cut before the end of the year.
