Overview

• Federal Reserve Governor Stephen Miran said China’s new rare‑earth export limits have shifted the balance of risks to the downside and that policy should respond more quickly.
• Beijing announced the restrictions on Oct. 9 targeting military uses, and President Donald Trump threatened tariffs of up to 100% on Chinese imports in response.
• Miran described the current stance as too restrictive and, as reported by multiple outlets, has proposed an additional 1.25 percentage points of cuts beyond September’s quarter‑point move.
• He favors ending quantitative tightening soon, aligning with Chair Jerome Powell’s signal that balance‑sheet runoff is likely to stop in the coming months.
• Markets expect the FOMC to weigh another 25‑basis‑point cut at its Oct. 28–29 meeting as an internal debate continues over moving gradually versus accelerating easing.