Fed's Miran (voter) says some of the concern he has on labour markets is a little less than he had before, adds a range of policies are pushing out the supply of the economy and will increase economic growth in a non-inflationary way

Miran's comments suggest a shift towards a more nuanced view of labor market concerns, indicating a potential easing of overly restrictive policies.

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Fed's Miran (voter) says some of the concern he has on labour markets is a little less than he had before, adds a range of policies are pushing out the supply of the economy and will increase economic growth in a non-inflationary way

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Says:

  • Fed is one of the biggest risks to growth.
  • Monetary policy has passively tightened.
  • We may be underestimating how restrictive monetary policy actually is.
Context

His acknowledgment of tight monetary conditions could imply that the Fed's current stance is more restrictive than perceived, which may affect future monetary policy considerations. This could have significant implications for growth expectations and thereby influence USD and risk sentiment across markets.

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