The Fed’s Lone Wolf? Why Stephen Miran is Calling for a 1.5% Rate Cut Fire sale
The Federal Reserve is usually a place of "wait and see," but Governor Stephen Miran just threw a wrench into the consensus. While most of the board is preaching caution, Miran is banging the drum for an aggressive retreat from high interest rates.
$INIT Here’s why his "150 basis point" vision for 2026 is sending shockwaves through Wall Street:
1. The Bold Math: 1.5% or Bust
While the median Fed "dot plot" suggests a slow-and-steady approach, Miran is calling for at least 1.5 percentage points in cuts this year.
His Logic: Inflation has cooled, and he believes the current rates are "punitive" rather than protective.
The Goal: To get ahead of a cooling labor market before the "soft landing" turns into a hard thump.
2. A "Supply-Side" Spin
Miran isn't just worried about prices; he’s looking at the engine of the economy. He argues that by cutting rates now, the Fed can better accommodate a growing supply side. In his view, keeping rates high doesn't just fight inflation—it kills the investment needed to grow the economy.
$HOME 3. The "Lame Duck" Influence?
The timing is fascinating. Miran’s term technically expired in January, but he’s staying in his seat until a successor is confirmed. This has given him a unique, "unfiltered" platform to challenge the more hawkish members of the FOMC.
$ASTER "The truth is that pushing out the supply side of the economy still allows for monetary policy to accommodate that." — Stephen Miran
Is Miran a visionary seeing a recession before anyone else, or is he an outlier pushing for a risky "sugar high" for the markets? Either way, he’s successfully shifted the conversation from "If we cut" to "How deep can we go?"
#RateCutExpectations #MonetaryShift #PEPEBrokeThroughDowntrendLine