Fed Governor Miran says job losses in February add to the case for more interest rate cuts
Federal Reserve Governor Stephen Miran said Friday that February’s weak jobs report supports the rationale for the central bank to cut interest rates further.
Responding to the 92,000 decline in nonfarm payrolls reported Friday by the Bureau of Labor Statistics, Miran said in the CNBC interview that the Fed should focus on supporting the labor market rather than worrying about inflation.
“I don’t think we have an inflation problem,” he said on “Money Movers.” “I think the labor market can be more accommodating than monetary policy. And I don’t see it appropriate to have a modest restrictive stance on monetary policy as opposed to a neutral stance. I think it’s appropriate to be close to neutral.”
Currently, the Fed’s key interest rate is targeted at a range of 3.5% to 3.75%, following three consecutive quarter-point cuts in the second half of 2025.
If Miran had his way, the rate would be around neutral, and Miran thinks it’s a full percentage point lower. The consensus among Fed officials at their December meeting was that the neutral level (one that neither stalls nor stimulates the economy) was around 3.1%, meaning two more rate cuts.
Miran argues that the stubbornly high inflation figures are due to how they are measured by the Commerce and Labor ministries rather than the real underlying pressures.
One factor he cited was rising portfolio management fees in a generally bullish stock market environment. Portfolio management fees are generally charged as a percentage of assets; so when markets rise, the dollar value of these fees increases even if the base rate for these services does not increase.
Miran added that the recent rise in oil prices and the resulting increase in pump costs related to the Iran war are less concerning.
“Usually the Federal Reserve does not react this way to high oil prices. [boosts] headline inflation, but it tends to be a one-off shock,” he said. “When you think about core inflation [which does not include energy prices]”It tends to be a better predictor of where inflation will go in the medium term than headline inflation.”
Miran has been a dissenter at every Federal Open Market Committee meeting he has attended since September, after President Donald Trump nominated him for governor. For the three rate cuts, he opted for more aggressive half-point cuts over the quarter-point moves the committee approved. When the FOMC voted not to cut in January, Miran said he wanted a quarter-point cut.
Asked if he would oppose it again, he said: “I hope not, but that is my colleagues’ decision. I hope we will vote for the cut.”
Miran was appointed to complete the unexpired term of Adriana Kugler, who resigned in August 2025. This term ended in January, but Miran continued in his post until his successor was approved. Trump nominated Kevin Warsh to the position to replace current Fed Chairman Jerome Powell, whose term ends in May.
Miran said, “I will be at the meeting in a few weeks and then I will attend the meeting every day.”
