By Michael S. Derby
(Reuters) -Federal Reserve Governor Stephen Miran reiterated on Wednesday that he believes the current level of short-term rates is too restrictive and is creating risks for the U.S. economy.
“I think policy is too restrictive and that we’re too far above where neutral rates would be,” Miran said in an interview on Yahoo Finance’s website. “Given the state of the labor market, I think that continuing to run policy that restrictive” is something that would “run unnecessary risks,” he said, adding that barring a surprise it would make sense to cut rates again in December.
In the interview, Miran said that hiring data from private company ADP released earlier in the day was a “welcome surprise.” That report said private employers added 42,000 jobs in October. The data came as the ongoing government shutdown has deprived markets of official data, including on the payroll front.
The dearth of official statistics has made it hard for Fed officials to know what to do next with monetary policy. After last week’s Fed meeting Chair Jerome Powell cautioned that a Fed rate cut in December is not a lock. But Miran said that barring any surprises he remains likely to favor a December cut in what’s now a 3.75% to 4% federal funds rate target range.
Miran was also asked about the outlook for President Donald Trump’s tariff regime, which is currently being weighed by the Supreme Court. The Fed governor said creating uncertainty about the president’s import tax surge “could be a drag on the economy.”
(Reporting by Michael S. Derby; Editing by Andrea Ricci )
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