Federal Reserve Governor Stephen Miran said he would favor a half-point interest-rate cut this month, and repeated his view that trade tensions add uncertainty to the economy and increase downside risks to growth.
“If monetary policy stays as restrictive as it is, and you have a shock like this hit the economy, it does materially increase the negative consequences of that shock,” Miran said Thursday to Fox Business.
He added he would favor a half-point cut when officials meet Oct. 28-29, though the committee is likely to lower rates by a quarter-percentage point, as it did in September.
“I think that we are probably set up for three 25-basis-point cuts this year,” he said.
Fed Chair Jerome Powell signaled the central bank is on track for a quarter-point cut this month as a slow-down in hiring risks a spike in unemployment. Still, some policymakers have expressed the need to stay cautious as inflation remains above their 2% goal.
