Federal Reserve (Fed) Governor Stephen Miran spoke at the Institute of International Finance Annual Membership Meeting in Washington, DC. He stated that regulation is a significant driver of the supply side of the economy, and other economists underappreciate the fact that the United States (US) economy is in a relatively strong position.
Regulation is a big driver of supply side of the economy, other economists underappreciate that US economy in a pretty good place.
Monetary policy too tight.
Makes US economy more brittle to shocks like recent change with china and rare earths.
Policy has gotten about 1.5 percentage points tighter this year, due to rapid rise in neutral rate.
25 bps point cuts is too slow a pace.
Risk premia not particularly elevated.
Risks that emerged in this last week add urgency to need to cut rates.
Decline in deficit this year is also a factor pushing neutral rate down.
Need rate cuts because of passive monetary policy tightening, and improved inflation outlook.
Would be much better to have government data.
Difficult to track inflation using alternative data.
Fed policy must be forecast-dependent, not data-dependent.
Must be viewed as an honest player, and must not be involved in issues like climate change, racial politics.
Fed officials must treat all govt policies equally, not only highlighting tariffs.
Fed must talk about all government policies, or none of them.”