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1h ago

Powell Urges Caution as New Fed Governor Miran Presses for Steeper Rate Cuts

A split committee after last week’s quarter-point cut leaves October’s call hinging on September labor plus inflation reports.

U.S. Federal Reserve Chair Jerome Powell speaks during a press conference, following the issuance of the Federal Open Market Committee's statement on interest rate policy, in Washington, D.C., U.S., September 17, 2025. REUTERS/Elizabeth Frantz
Fed governor Stephen Miran said interest rates are too high and wants to lower them aggressively to protect the labour market. Bloomberg
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Overview

  • In Providence, Jerome Powell warned against cutting too aggressively, saying the Fed risks leaving the inflation fight unfinished if it moves too fast.
  • Stephen Miran, newly seated and on leave from the White House CEA, argued policy is far too restrictive and said the appropriate rate is in the mid‑2% range after dissenting for a bigger cut last week.
  • Michelle Bowman said the Fed should move more quickly due to cooling inflation and a softening job market, contrasting with Austan Goolsbee’s call for a careful, gradual path.
  • Other officials signaled limited scope for near‑term easing, with Alberto Musalem urging caution and Raphael Bostic saying he would not support another cut this year absent compelling data.
  • FedWatch futures point to a high probability of at least one more quarter‑point reduction by the Oct. 28–29 meeting, as legal and political pressure on the central bank continues over attempts to oust Governor Lisa Cook.