Washington (Reuters) – The American economy is more vulnerable to shocks currently due to high interest rates based on unfounded inflationary concerns among the decision -makers of the Federal Reserve (Fed), Governor Stephen Miran said on Wednesday on the program “Mornings with Maria” on the Fox Business channel.
Stephen Miran said that the master rate of the US central bank is expected to drop by two percentage points, in half-point stages.
“When monetary policy is also restrictive, the economy becomes more vulnerable to negative shocks,” he said.
He also said that there was no sign that customs duties stimulated inflation, but “this is what retains many of my colleagues”.
The FED reduced its key percentage point rates last week last week, a decision challenged by Stephen Miran, who estimated at the meeting that a drop in 50 base points was more appropriate.
Stephen Miran had said earlier this week that changes to immigration, tax and regulatory policies should make current monetary policy far too restrictive compared to what the economy needs to maintain inflation at its target level.
Other Fed officials, on the other hand, have questioned the need for new rate drops in a high inflation context.
(Written by Howard Schneider; Diana Mandia; edited by Augustin Turpin)
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