Senate's Banking Committee Chair suggests a potential 0.5% interest rate reduction, expresses support for Trump's proposed Federal Reserve Governor
The U.S. Senate confirmed Stephen Miran, President Trump's chief economic advisor, as a new member of the Federal Reserve Board of Governors on Monday evening. Miran, who earned his bachelor's degree in economics from Boston University and his PhD from Harvard in 2010, will hold one of the twelve votes in the Fed's interest rate decision-making body.
This confirmation comes as the Federal Reserve is expected to make a 25 basis point cut in the federal funds rate this week. According to the CME FedWatch, there is a 96% chance of a 25 basis point cut and just a 4% chance of a 50 basis point cut. Senate Banking Committee Chairman Tim Scott believes a 50 basis point rate cut is possible this week.
The confirmation of Miran to the Federal Reserve Board of Governors is significant, as he is expected to have a role in the decision-making process regarding interest rates. President Trump has long expressed a desire for lower interest rates, and he has pressured Jerome Powell, the Federal Reserve Chair, throughout his presidency. Trump posted on Truth Social last week that "Powell is a total disaster, who doesn't have a clue!!!"
Scott, who applauded Trump's pick for the Federal Reserve Board of Governors, is confident in Miran's ability to ensure economic growth as the Fed meets to discuss trends in the economy and a possible rate change. He believes that a more aggressive rate cut is necessary to stimulate the economy.
The Fed has not lowered rates since Trump took office in his second term. However, the CME FedWatch shows that the first interest rate cut is expected to occur in 2025. The confirmation of Miran to the Federal Reserve Board of Governors may accelerate this timeline.
On Wednesday afternoon, Federal Reserve Chair Jerome Powell is expected to make remarks regarding the FOMC meeting and any rate cut at 2:30 p.m. ET. As the Fed continues to navigate the economic landscape, the addition of Miran to the Board of Governors may provide fresh perspectives and insights to help guide the decision-making process.
Read also:
- Planned construction of enclosures within Görlitzer Park faces delays
- Foreign financial aid for German citizens residing abroad persists
- United States and Russia prepared to delve deeper into negotiations regarding the Sakhalin 1 oil and gas project
- Unveiling Danny Curran - Britain's prominent inheritance property tracker
