Fed’s Miran: I expect a faster fall in PCE shelter inflation

Federal Reserve (Fed) Governor Stephen Miran stated that tariffs aren't driving higher inflation in goods and argued that the measure of underlying inflation is near 2% on Monday at Columbia University's Institute of Global Politics, in New York.

Key quotes

I expect a faster fall in PCE shelter inflation.

Prices are once again stable, and monetary policy should reflect that.

Current excess inflation is not reflective of underlying supply and demand in the economy.

Market-based core ex shelter inflation running below 2.3%.

A faster pace of cuts would move us closer to the neutral rate.

I don't see evidence of concern in the inflation expectations data.

If shelter inflation does not decline, it might change the outlook for inflation overall.

There are a variety of negative consequences to selling MBS that outweigh the desire for an all-Treasury balance sheet.

I do not support sales of mortgage-backed securities because it might, at this point, involve the Fed realizing losses on its holdings.

I would prefer an all Treasury balance sheet, unless there is another crisis centered in the housing market.

The standing repo facility is not as effective as the Fed hoped it would be.

The renewal of Treasury bill purchases by the Fed is not QE, and will continue to transfer some risk to private markets.

I expect better GDP growth and lower deficits from tariff revenue.

There's no excess underlying inflation relative to the 2% target.

Steps that the Fed took to inject credit into the housing market have contributed to the housing affordability issues that households are facing.

The least attractive part of being at the Fed is having only 1 of 12 votes on a committee.

The reserve banks play a valuable role in providing local perspectives and contacts.