Trump's new Fed appointee says fewer immigrants should free up more housing and lower rental costs | Fortune

"President Donald Trump's appointee to the Federal Reserve's Board of Governors said Monday that the central bank's key interest rate should be much lower than its current 4.1% level, staking out a position far different than his colleagues. Stephen Miran, who is also a top economic adviser to Trump, said in remarks to the Economic Club of New York that sharp declines in immigration, rising tariff revenue, and an aging population all suggest that the Fed's rate should be closer to 2.5% instead."

"Miran's comments underscore the different perspective he brings to the Fed's deliberations over interest rate policy. His appointment has been controversial because he has kept his position as the head of the White House's Council of Economic Advisers while taking unpaid leave, raising concerns about the Fed's traditional independence from day-to-day politics. His term on the Fed's board expires in January, and Miran has suggested he would return to the White House after that,"

"Miran said that fewer immigrants should free up more housing and lower rental costs, reducing inflationary pressures. And tariff revenues - which may top $300 billion a year, according to Congressional Budget Office estimates - should reduce the deficit, he added. Over time, that would mean the Fed doesn't have to keep its benchmark interest rate as high as it is now to bring inflation down."

Stephen Miran, a presidential appointee to the Federal Reserve Board and top White House economic adviser, recommends lowering the central bank's key interest rate from 4.1% to about 2.5%. He attributes the need for a lower neutral rate to sharp declines in immigration, rising tariff revenues, and an aging population, which he says reduce inflationary pressures and fiscal deficits. Miran calls current policy restrictive and warns it risks hindering maximum employment. His dual role in the White House while serving on the Fed board has raised concerns about central bank independence. His Fed term expires in January.

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