Fed Governor Miran says job losses in February add to the case for more interest rate cuts

Federal Reserve Governor Stephen Miran said Friday that the weak February jobs report bolsters the rationale for the central bank to lower interest rates further.

Responding to the drop of 92,000 in nonfarm payrolls that the Bureau of Labor Statistics reported Friday, Miran said in a CNBC interview that the Fed should be focusing more on supporting the labor market than worrying about inflation.

“I think that we don’t have an inflation problem,” he said on the “Money Movers” show. “I think that the labor market can use more accommodation from monetary policy. And I don’t see having a modestly restrictive stance of monetary policy as opposed to a neutral stance as being appropriate. I think being close to neutral is appropriate.”

Currently, the Fed’s key interest rate is targeted in a range between 3.5% to 3.75%, following three consecutive quarter percentage point cuts in the latter part of 2025.

If Miran had his way, the rate would be around neutral, which he deems to be about a full percentage point lower. The consensus of Fed officials at the December meeting was that neutral — a level neither holds back nor boosts the economy — is around 3.1%, implying two more cuts.

Miran has been arguing that stubbornly high inflation numbers are more a function of how it is measured by the Commerce and Labor departments rather than true underlying pressures.

One factor he cited was portfolio management fees, which have risen amid a generally higher stock market. Portfolio management fees are often charged as a percentage of assets, so when markets rise the dollar value of those fees increases even though the underlying rate for those services does not.

The recent surge in oil prices and corresponding boost for costs at the pump related to the Iran war are less of a concern, Miran added.

“Typically, the Federal Reserve doesn’t respond to higher oil prices like that. It [boosts] headline inflation, but it tends to be a one-off shock,” he said. “When you think about core inflation [which does not include energy prices], it tends to be more predictive of where inflation is going over the medium term than headline inflation.”

Miran has dissented at each of the Federal Open Market Committee meetings he has attended since September, after President Donald Trump nominated him as a governor. For the three rate cuts, he preferred more aggressive half percentage point reductions to the quarter-point moves the committee approved. In January, when the FOMC voted not to cut, Miran said he wanted a quarter-point reduction.

Asked if he would dissent again, he said, “I hope not, but that would be up to my colleagues. I hope that we vote to cut.”

Miran was appointed to full the unexpired term of Adriana Kugler, who resigned in August 2025. That term expired in January, but Miran has continued to serve until a successor is approved. Trump nominated Kevin Warsh to a position that ultimately will be a replacement for current Fed Chair Jerome Powell, whose term expires in May.

“I will be at the meeting in a couple weeks, and after that I will take it a day at a time,” Miran said.