'Trump confidant' Fed board member "Should quickly lower interest rates... maintaining tightening will raise unemployment"

Steve Miran US Federal Reserve(Fed) board member argued that "the policy rate should be lowered quickly."

In an interview with Bloomberg on the 25th (local time), Miran said, "I do not think the economy will collapse soon," and added, "(however) considering the risks, I would choose to act preemptively and lower rates in advance rather than wait until a major catastrophe occurs." Miran is a close aide appointed by U.S. President Donald Trump, and began his term as a Fed board member on the 16th of this month.

Miran emphasized, "The neutral interest rate is gradually declining." He explained that the Fed's current policy rate (4.00~4.25%) far exceeds his estimate of the neutral rate.

Miran said, "(Monetary) policy needs to be adjusted to the neutral rate," and "If policy remains overly restrictive for a long time, we will face a situation in which the unemployment rate rises meaningfully." The neutral rate refers to the real interest rate level that maximizes employment while not stimulating inflation.