Fed Governor Miran says banks are over regulated, harming credit creation; he is a big supporter of Bowman's agenda

Fed Governor Miran's remarks suggest a dovish stance regarding inflation and credit conditions, signaling a potential shift in monetary policy if his views align with broader consensus.

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Fed Governor Miran says banks are over regulated, harming credit creation; he is a big supporter of Bowman's agenda

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  • Not seen anything worrisome yet in private credit despite some bumps. It is not yet worrying from a macro perspective.
  • Labour market data has been a bit better, but it is still too early to sound the all clear.
  • Does not think the US has an inflation problem at the moment.
  • Prices seem stable.
  • Monetary policy could offset the impact of credit card gaps.
  • AI will be profoundly dis-inflationary.
  • Food prices can always see outliers.
  • Reiterates Fed should cut by 100bps this year, four cuts are appropriate, sooner rather than later.
Context

His call for 100bps in rate cuts this year could indicate a more supportive environment for growth, especially as he downplays current inflation concerns and credit risks. Keep an eye on the market's digestion of these comments, particularly for how they might influence the USD and fixed income markets moving forward.

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