Fed Governor Stephen Miran, the only Federal Open Market Committee (FOMC) member to vote for a 50 bps rate cut during the past two meetings, has once again reiterated his call for a jumbo-sized rate cut at the December FOMC.
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“But failing new information that’s made me update my forecasts, looking out in time, yeah, I would think that 50 is appropriate, as I have in the past, but at a minimum 25,” Miran said in an interview with CNBC on Monday.
Miran Favors Economic Projections Over Current Data
Miran pointed to better-than-expected inflation data and weakness in the labor market as the rationale behind his opinion. In addition, he believes that current economic data are “backward looking” and that the Fed should make monetary policy decisions based on economic projections 12 to 18 months into the future.
Still, a 25 bps cut next month is the likely scenario with 60.9% odds, according to CME’s FedWatch tool. The odds of an unchanged rate sit at 39.1%, while the odds of a 50 bps cut are at 0%.
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