## Miran Pushes for Aggressive Rate Cuts: Fed Governor Signals Need for Substantial Policy Shift in 2026

Federal Reserve Governor Stephen Miran has emerged as a vocal advocate for substantial interest rate reductions, calling for cuts exceeding one percentage point during 2026. Speaking on Fox Business Network this week, Miran contested the notion that current monetary policy maintains a neutral stance, arguing instead that policy remains decidedly restrictive.

"Our current policy posture is clearly restraining economic activity rather than providing neutral support," Miran articulated during his television appearance. "The economy warrants well over 100 basis points in rate reductions this year." His position reflects growing concern about the drag that elevated rates continue to exert on economic expansion.

### The Policy Divide Within the Fed

Miran's advocacy for more aggressive easing stands in contrast to the measured approach signaled by other Federal Reserve officials this week. Tom Barkin, president of the Richmond Fed, characterized the current rate corridor—positioned between 3.5% and 3.75%—as likely residing within estimates of the neutral range. Similarly, Minneapolis Fed President Neel Kashkari suggested that monetary policy has drawn sufficiently close to neutral given the resilience demonstrated by economic indicators.

Across the 19-member Federal Open Market Committee, considerable divergence exists regarding the neutral rate estimate. Projections range from a floor of 2.6% to a ceiling of 3.9%, with the committee median settling at 3%.

### Recent Action and Forward Guidance

The Federal Reserve has executed three consecutive rate reductions since September, yet policymakers have signaled caution regarding the pace of further adjustments. Official guidance anticipates just a single rate cut throughout 2026, reflecting uncertainty about inflation trajectory and labor market durability. This conservative outlook underscores the tension between supporting employment and anchoring inflation expectations, which have remained elevated relative to target for nearly five years.

Barkin emphasized this balancing challenge, noting that maintaining labor market strength while preventing inflation psychology from becoming entrenched represents the core policy dilemma facing the institution moving forward.

### Miran's Background and Influence

Miran transitioned to his Federal Reserve role in September after serving as chair of the White House Council of Economic Advisers. Throughout his tenure at the central bank, he has consistently championed more forceful rate reduction measures, though his term concludes this month. His departure may alter the internal dynamics of Fed policy deliberations, particularly regarding the scope of 2026 easing.