Stephen Miran, a Federal Reserve Governor appointed by former President Trump, recently acknowledged the negative impact of the administration on the U.S. economy. In an interview at CNBC’s Invest in America Forum, he indicated that the labor market has deteriorated since Trump’s inauguration.
Miran’s Insights on the Economy and Job Market
During the discussion, Miran stated, “The economy was weaker in the first half of the year versus where it was last year.” He attributed this decline to uncertainties stemming from Trump’s policies. While he did not directly criticize the former president, it was clear that he believed the administration’s actions contributed to the economic slowdown.
Impact of Policy Uncertainty
- Miran noted that concerns over significant tax changes may have delayed business investments.
- Trump’s assertion of a booming economy contradicts data indicating otherwise.
- The labor market continued to show signs of weakness, as reported by Miran.
Miran explained how the substantial tax changes could have caused businesses to hesitate on investments. He suggested that looming uncertainties had affected the overall economic confidence. The confusion around trade policies and tariffs implemented by the Trump administration was also a pivotal factor in investor hesitance.
Trade Tensions and Their Consequences
The former president’s trade war with China was highlighted as a major concern. Miran mentioned that recent trade policy changes, particularly regarding Chinese export controls, added to the economic uncertainties. Following China’s decision, Trump threatened to impose a 100% tariff on all Chinese goods, which further destabilized the economic outlook.
- Miran expressed concerns about increased downside risks in the economy.
- He suggested that policymakers should adjust their strategies in light of these developments.
- Miran advocated for interest rate cuts, aligning with Trump’s preferences.
Miran’s Role Within the Federal Reserve
Before his appointment to the Federal Reserve, Miran served as the chair of the White House Council of Economic Advisers. His confirmation was narrowly secured, which raised eyebrows among Democrats due to his decision to take an unpaid leave instead of resigning from his previous role. Critics interpreted this as an attempt by Trump to exert influence over the Federal Reserve.
Miran’s admission regarding the economy reflects a crucial turning point. With his background and connections to the Trump administration, his analysis offers valuable insights into the intersection of economic policy and political decisions in the U.S.
