Federal Reserve member Stephen Miran, on Monday, 22 December, cautioned that not cutting interest rates may heighten the risk of a recession in the US economy.
“If we don't adjust policy down, we do face a rising risk of a recession,” Miran said in an interview on Bloomberg Television.
He also addressed the short-term risks of recession and said, “I don't see a recession in the near term.”
Miran also mentioned he is likely to stay on the central bank's Board of Governors beyond his term until the Senate confirms whoever President Donald Trump nominates as the next Fed chair.
"If nobody is confirmed in my seat by January 31, I assume that I will stay," he said.
Miran joined the Fed in September, appointed by Trump to serve the few remaining months of a 14-year board term following Adriana Kugler's unexpected resignation as a Fed governor in August. His term ends on January 31, but he may stay until the Senate confirms a successor.
Trump is considering whom to appoint to the Fed as a successor to Fed Chair Jerome Powell, whose term as the central bank's leader expires in May.
(More to come…)