Fed Governor Stephen Miran reiterated his call for the Fed to cut interest rates by 100 bps this year, citing the disinflationary effects of AI amid “broadly stable” prices. Miran added that risks to the labor market are still present, paving the way for lower rates to support employment.
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Forget margin or options. Here's how the pros trade QQQ“One difference between me and some of my colleagues is that I don’t think we have an inflation problem,” he told Fox Business on Thursday.
Portfolio Fees Add Pressure to Core PCE Inflation, Says Miran
Higher stock market prices have contributed to elevated portfolio management fees. These fees have added 0.4% to the core Personal Consumption Expenditures (PCE) Index, which last came in at 3%, said Miran. Core PCE is the Fed’s preferred inflation gauge and tracks changes in consumer spending while excluding volatile food and energy prices.
The Fed will hold its next Federal Open Market Committee (FOMC) meeting on March 18, though a rate cut appears unlikely, with the odds at just 2% according to the CME FedWatch tool.