U.S. Fed Governor Miran "Fed's gold purchases do not align with its mission"

JH Kim

Summary

Steven Miran, a Fed governor, said the Fed's gold purchases do not align with its policy mandate.
He said the Fed's asset purchases focus on asset classes directly related to conducting monetary policy, such as Treasuries and MBS.
Miran drew a line on the possibility of stabilizing the currency's value through gold purchases, and emphasized maintaining the traditional asset composition.

Steven Miran, a member of the U.S. Federal Reserve (Fed), expressed the view that the Fed's purchase of gold does not align with its policy mandate.

On the 14th (local time), according to the economic news channel Walter Bloomberg, Miran said, "The Fed's purchasing of gold is not consistent with our institution's legal mandate."

The Fed's policy mandate is based on the dual goals of price stability and maximum employment, and asset purchases have also been centered on asset classes directly related to conducting monetary policy, such as Treasuries and MBS. Miran's remarks are interpreted as drawing a clear line amid recent mentions by some market participants of stabilizing the currency value through gold purchases.

He previously mentioned the need for a 25bp or 50bp rate cut in the December rate decision, and has emphasized that the Fed should maintain its traditional asset composition during the future policy normalization process.