Fed Rate Cuts Push: Stephen Miran Urges Faster Action Amid U.S.-China Trade Tensions

• Miran urges rapid Fed rate cuts amid escalating U.S.-China trade tensions.
• Markets expect another 25-bps cut at the October FOMC meeting.
• Powell and other Fed officials align on continued monetary easing in 2025.

Federal Reserve Governor Stephen Miran has renewed calls for immediate Fed rate cuts as trade tensions between the United States and China intensify. His remarks, made ahead of the upcoming Federal Open Market Committee (FOMC) meeting, signal a growing concern that prolonged uncertainty could slow economic growth. Miran emphasized that the balance of risks has shifted significantly in recent days, making it crucial for policymakers to move faster toward a neutral policy stance.

Fed Rate Cuts Seen as Urgent Response to Trade Uncertainty

Miran stated that escalating U.S.-China trade friction has created new “tail risks” for the global economy, adding pressure on the Federal Reserve to act swiftly. According to a Bloomberg report, he warned that the outlook for economic growth has become increasingly uncertain, requiring quicker monetary easing. He explained that Fed rate cuts are necessary to restore stability and counteract the adverse effects of trade disruptions.

His comments followed President Donald Trump’s announcement of a 100% tariff on Chinese imports beginning November 1. The tariff decision has heightened market anxiety about a potential trade war, raising fears of a slowdown in exports, manufacturing, and supply chains. Miran pointed out that these developments have made downside risks to the economy more pronounced than they were a week ago.

Miran, who has consistently called for multiple 50-basis-point cuts, said the central bank must respond to this shifting environment before trade-related uncertainty undermines consumer and business confidence. He reiterated that moving rapidly toward a neutral rate is now an urgent priority.

Market Data Confirms High Probability of Fed Rate Cuts

The CME FedWatch Tool indicates that markets have nearly priced in another Fed rate cut at the October 29 FOMC meeting. The probability of a 25-basis-point reduction currently stands at 96.7%. If approved, it would be the second rate adjustment this year, following the September cut prompted by labor market weakness.

Miran added that two additional Fed rate cuts remain realistic by year-end, a view shared by fellow governors Chris Waller and Michelle Bowman. The growing alignment among policymakers suggests that the central bank could adopt a more aggressive easing cycle through the remainder of 2025.

Powell Confirms Continuation of Easing Path

Federal Reserve Chair Jerome Powell supported this outlook, stating that the economic environment has not changed substantially since the September meeting. Powell said the committee remains focused on mitigating downside risks and maintaining stability amid heightened external pressures.

With trade tensions intensifying and uncertainty clouding economic forecasts, Fed officials appear increasingly unified on the need for continued rate adjustments. Miran’s renewed push underscores that Fed rate cuts are not just a precaution but a critical measure to sustain economic resilience as policy debates and trade disputes continue to shape the U.S. outlook.