Fed’s Miran Says Policy Is ‘Very Restrictive’ as Inflation Nears 2%

Overview

• In a Nov. 12 Q&A at the University of Cambridge, Stephen Miran urged a more forward-looking approach to interest-rate decisions.
• He said inflation should keep easing toward the 2% goal and appears close to that level, while calling for more data to assess the economy.
• He suggested recent elevated readings largely reflect how inflation is measured and called for closer scrutiny of the indicators.
• He defended central-bank independence, saying policy should not pursue political purposes and that setting rates in response to climate issues is not appropriate.
• He advocated more prudent use of the Federal Reserve’s balance sheet, suggested quantitative easing may have been used in excess, and said the dollar’s reserve status remains extremely strong.