Federal Reserve Governor Stephen Miran believes monetary policy is too restrictive, increasing the risk of a downturn. He dissented against a quarter-point rate cut in favor of a half-point reduction, emphasizing that financial markets are influenced by various factors, not just policy decisions.

Miran’s comments reflect the differing views among Fed officials following last week’s rate cut. With a divided decision and Fed Chair Jerome Powell acknowledging strong differences in opinion, the central bank’s next move remains uncertain. Powell emphasized that another rate cut is not guaranteed at the December meeting.

Kansas City Fed President Jeffrey Schmid argued against a rate cut, focusing on inflation that remains above the 2% target. He highlighted easy financial conditions in markets, questioning the need for further policy easing. Miran countered by pointing out potential stresses in the financial system and sluggishness in the housing market.

Miran, echoing his previous statements, emphasized the impact of population changes and other shocks on the economy. He believes the Fed should continue with half-point rate cuts until reaching a “neutral” level significantly lower than the current rate. Despite differing opinions, the path forward for monetary policy remains uncertain.

Read more at Yahoo Finance: Fed’s Miran says he can’t base policy stance on buoyant financial markets