Remarks from Federal Reserve Governor Stephen Miran lean decisively dovish, challenging the idea that current policy settings remain appropriate. The focus is on subdued underlying inflation, limited pressure from market yields, and scope for sizeable rate cuts this year.

Key Quotes

Warsh is a fantastic choice to lead the Fed.

The Fed needs to cut rates by about a percentage point this year.

Underlying inflation is not a problem.

Market yields have not gone up by that much.

Better growth in the future does not require higher interest rates.

There is not much to read into recent volatility in metal markets.

In the longer run, a smaller Fed balance sheet would be preferable.

Achieving a smaller balance sheet would require further regulatory changes.

Monetary policy is currently too tight.