Myron, Fed board member: "Tariffs do not cause inflation"

New Fed board member Myron appears on CNBC

"Inflation shows no trend difference compared to other countries"

Steven Myron, considered a close associate of U.S. President Donald Trump and the new member of the U.S. central bank (Fed), argued that "he has not seen meaningful inflation caused by tariffs."

Myron said on the 19th (local time) on CNBC that this was in relation to his dissent at the Federal Open Market Committee (FOMC) rate decision on the 17th that "a 0.5% percentage point rate cut was necessary."

He explained, "Prices of items within core goods that have a high share of imports did not rise faster than overall item prices," adding, "If tariffs caused higher inflation, import prices would have risen at a faster pace."

Myron pointed out, "If tariffs were causing meaningful inflation in the U.S., there should be clear evidence showing the U.S. standing out compared to other countries, but there is no identifiable trend difference."

He also said that, under the Trump administration's immigration policy, as net immigration turns negative, it would act as a disinflationary factor that slows inflation.

Myron acknowledged that he had been one of the officials who projected the year-end policy rate at 2.75–3.00% on the Fed's previously released Summary of Economic Projections (SEP) dot plot. This implies he expected an additional 1.25 percentage point rate cut within the year compared to the current level.

He added, "On the 22nd, I will fully explain my economic views (regarding the dissent) and detail the economics theory and mathematics behind them."

When a member files a dissent at an FOMC meeting, it is customary for them to publicly release a statement containing their individual views. Myron, who took office on the 16th, previously served as chairman of the White House Council of Economic Advisers (CEA) and is credited with helping design the Trump administration's tariff policy.

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com