Fed’s Miran says he may trim rate cut outlook, citing inflation

Subscribe to enjoy similar stories.The Trump administration spent months demanding the Federal Reserve cut interest rates. This week, two people with close ties to the White House said waiting to move makes some sense.Federal Reserve Governor Stephen Miran, speaking at an economic forum in Washington, D.C., said Thursday he is reconsidering his rate cut outlook for the year, trimming his projection from four cuts to potentially three and acknowledging the inflation picture had become more complicated even before war with Iran began.The remarks came just days after Treasury Secretary Scott Bessent also took a slight turn from his earlier stance on monetary policy.Cuts should come eventually, Bessent said at a Washington conference, but waiting for clarity on the Iran situation makes sense.

He also suggested the market could wait for President Donald Trump’s pick to helm the Fed, Kevin Warsh, to lead the next rate cycle.That marks a difference from where he stood earlier this year, when he described rate reductions as the single missing ingredient for stronger economic growth and argued the Fed had no reason to delay.Trump himself has been more direct on the subject. He has repeatedly called on Fed Chair Jerome Powell to lower borrowing costs, arguing that high interest rates were an unnecessary drag on an otherwise strong economy.The Fed cut interest rates three times last year but has held them steady so far in 2026.The shift comes as energy prices have surged following the outbreak of war with Iran, pushing headline inflation higher while core inflation has remained relatively contained.