Federal Reserve Governor Stephen Miran said U.S. interest rates remain too high relative to current inflation trends and economic conditions. Speaking publicly, he argued that inflation has effectively returned near the Fed’s target once temporary distortions are stripped out. Based on that assessment, Miran said more than a full percentage point of rate cuts would be appropriate in 2026, exceeding what markets and policymakers currently expect.

This statement introduces a sharper internal contrast within the Federal Reserve at a sensitive moment for markets. Expectations around the pace and depth of future rate cuts directly influence borrowing costs, asset pricing, and capital allocation decisions. A sitting governor calling for aggressive easing challenges the perception of a unified policy path and adds volatility to forward-rate expectations.

Markets will watch whether other Fed officials echo Miran’s assessment or push back against it in upcoming speeches and meeting minutes. Attention will also shift to inflation data revisions and labor-market signals that could validate or undermine his case for faster easing. Futures pricing may adjust incrementally as the debate evolves.

Absent broad agreement within the Federal Open Market Committee, policy is likely to continue moving cautiously. However, Miran’s remarks may widen the range of plausible outcomes for 2026, increasing sensitivity to economic data releases and Fed communications throughout the year.

A Federal Reserve governor publicly advocating for more than 100 basis points of rate cuts underscores growing debate over whether policy remains too tight. While not official guidance, the comments widen expectations for 2026, raising uncertainty around the timing and scale of future monetary easing.