Federal Reserve Governor Stephen Miran clarified his position on interest rate decisions and interactions with President Trump during a recent address to the Economic Club of New York. On Monday, Miran explicitly differentiated himself from the FOMC vote, independent opinion. He had particularly opposed a quarter-percentage point cut and urged a larger move.
Miran’s remarks come as all eyes are on speculation of his new role, and the potential effects on the FOMC’s new dynamics. He insisted that he never disclosed his planned vote to President Trump. In particular, he chose to withhold his own projections for the future path of the federal funds rate. Miran explained, “I did not talk to him about how I vote. I did not talk to him about my dots in the [Summary] of Economic Projections.”
The tenor between board members was described as collegial during the FOMC meeting — particularly striking were Miran’s exchanges with her compatriot, Governor Cook. Neel Kashkari said that when Miran arrived, it felt very business-as-usual. This tone reveals a rather sad acceptance of the status quo among the committee members.
Miran, who leads the Council of Economic Advisers, revealed that he made a decision to vote against the quarter-point reduction in rates, favoring a move twice that size instead. Here’s where he’s different, we think, about the federal funds rate by year-end. His projection is miles apart from the dot plot of the other 19 opinions expressed at the last FOMC meeting.
Concerns have been raised over potential ethical conflicts surrounding Miran’s position. We hope he will be discussing a leave of absence from his role as head of the White House’s Council of Economic Advisers. Clarifying his stance, Miran said that if President Trump had indicated he would remain in office past January, he would resign immediately, asserting, “If the President told me that I was going to stay in the seat past January, I would just resign immediately. You know, there’d be no question about it.”
On Tuesday morning, Miran received a congratulatory phone call, marking a moment of recognition amidst ongoing discussions about his future and decision-making processes. He recognized this role-switching interaction, defended it, but offered no further insight into what if anything it means.