Fed Governor Stephen Miran stressed that to maintain monetary policy independence, central bankers must be careful not to appear politically biased when discussing the Trump administration’s policies.
He warned that focusing solely on tariffs as a factor in inflation could undermine public perceptions of the Fed’s political neutrality.
Instead, Miran suggested an “all or nothing” approach, in which the Fed should either review all economic policies comprehensively or refrain from commenting on any of them.
Separately, Fed Governor Christopher Waller said current data points to weakness in the labor market, supporting the need for gradual rate cuts.
Waller added that the Fed must be careful not to act too aggressively because the true direction of the economy is still unclear amid strong GDP growth and a sluggish job market.
