Stephen Miran on AI
From Reducing the Fed’s Balance Sheet With Fed Board Governor Stephen Miran · · Hoover Institution
“AI is a great example of a positive supply shock that boosts productivity. Deregulation also pushes the neutral rate higher by improving productivity. Positive supply shocks will push the neutral rate higher because they improve the return on capital.”
On , Stephen Miran, Governor at Federal Reserve Board of Governors, spoke about AI during Reducing the Fed’s Balance Sheet With Fed Board Governor Stephen Miran on Hoover Institution.
About Stephen Miran
Stephen Miran, a former member of the Federal Reserve Board of Governors and now a senior strategist at Hudson Bay Capital Management, has argued that the Federal Reserve places too much emphasis on backward-looking data. In a June 2026 interview on CNBC's "Squawk on the Street," Miran said, "If all you had to do was make policy based on backward looking data, a machine could do it. You wouldn't need people." He added that the Fed should focus on why inflation might be elevated in 2027 rather than on current readings. Miran also stated that as long as inflation expectations beyond one year remain stable, the Fed's credibility is not an issue, but that credibility becomes a concern when those expectations begin to move. In a July 2026 appearance on "Bloomberg Surveillance," Miran discussed his relationship with President Donald Trump while serving on the Fed board. He said he shared his views with Trump about the qualities to look for in a new Fed chairman, but did not discuss monetary policy with him. Miran also criticized the Fed's post-pandemic mortgage purchases, arguing that buying mortgages when home prices were up 20% year over year contributed to persistent inflation. He suggested policymakers should pay more attention to measures of monetary growth.
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