CEOInterviews.AIStephen Miran on federal reserve balance sheet
From Reducing the Fed’s Balance Sheet With Fed Board Governor Stephen Miran · · Hoover Institution
“What I tried to do in the paper and in the speech is to provide a set of options for reducing reserve demand so that we don't have to keep increasing our balance sheet like this. We can go back to shrinking our balance sheet, which to me is the right approach. Once we undertake those options, I see 1 to 2 trillion dollars of potential reserve reduction while retaining ample reserves.”
On , Stephen Miran, Former Governor at Federal Reserve Board of Governors, spoke about federal reserve balance sheet during Reducing the Fed’s Balance Sheet With Fed Board Governor Stephen Miran on Hoover Institution.
About Stephen Miran
Stephen Miran, former chair of the Council of Economic Advisers under President Donald Trump and former Federal Reserve governor, has continued to comment on monetary policy and economic conditions in recent media appearances. Now a senior strategist at Hudson Bay Capital Management, Miran has argued that the Federal Reserve should pay greater attention to monetary aggregates, such as money supply growth, as a cross-check on policy decisions. He has also discussed the Fed's balance sheet, suggesting that reducing demand for reserves could allow the central bank to shrink its balance sheet by $1 to $2 trillion without causing undue market stress. Miran has stated that he does not consider himself a heterodox economist, describing his views as within the mainstream of economic research. In his public commentary, Miran has expressed views on current inflation and interest rate policy. He has said that recent inflation is "much more likely to be transitory" than post-pandemic inflation because it is not driven by monetary or fiscal policy. He has also argued against raising interest rates, calling it "weird" to hike when inflation data are likely to be revised downward, and stating that hiking to compensate for "statistical noise" would be "effectively asking Americans to lose their jobs because of a measurement error." Miran has also discussed tariffs, saying they can raise significant revenue and reduce the fiscal deficit, and has characterized recent trade policy as a "reversion to historic norms" rather than a departure from tradition.
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