Fed Officials Split Over Policy Direction as Debate Intensifies Ahead of Meeting
WASHINGTON, Nov 3 (Reuters) — Federal Reserve officials continued to express divided views on the U.S. economy and the direction of monetary policy on Monday, as debate grows ahead of the central bank’s next policy meeting. The discussion has become even more complex due to the temporary suspension of key economic data during the ongoing federal government shutdown.
Miran Argues for Deeper Rate Cuts
Speaking on Bloomberg Surveillance, Fed Governor Stephen Miran reiterated his call for substantial interest rate cuts, a stance he has maintained since joining the Board of Governors in September. He emphasized that strong performance in stock and corporate credit markets should not be mistaken for an overly loose monetary policy.
Miran argued that current borrowing costs remain too restrictive, limiting business investment and consumer spending. He also suggested that easing monetary conditions could help sustain growth without fueling inflationary pressures.
Policy Debate Likely to Deepen
Miran’s remarks highlight growing divisions within the Fed over how to balance inflation control with economic stability. Other officials, including Chicago Fed President Austan Goolsbee, have recently stressed the need to prioritize inflation management before shifting toward rate cuts.
As policymakers prepare for their upcoming meeting, analysts expect the debate to sharpen, especially in the absence of fresh data that typically guides interest rate decisions.
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