Fed's Miran: The economy could use additional support from monetary policy | Metals Mine

  • Fed's Miran: The economy could use additional support from monetary policy

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FlyingTurtle
Mar 25, 2026 4:32pm
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Quoting Momofrmnyc
{quote} Whether he stays or not doesn’t really matter to me—everyone only has one vote, and it takes a majority to shift anything.
Miran's sensible reasoning could convince others.

The majority have the view that to handle supply shortages they should impose austerity to bring demand down, which requires a recession to accomplish.

Miran's view is to accommodate suppliers to increase supply to lower prices, which is the reasonable view.
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FlyingTurtle
Mar 25, 2026 9:16pm
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Quoting Trader#29B4
{quote} This argument only holds water if suppliers are actually constrained by lending rates and lending rates alone; I'm not aware of any model on the books that would show that the main constraint on current industry is a lack of access to capital.
The argument holds water simply by observing that high rates have never reduced prices without first causing a recession that then lowers prices. And neither have low rates ever increased prices without a supply shock.

Consumers who have been accustomed to high rates even when rates are low are even less constrained by lending rates, so if anyone anywhere is sensitive to rates it is suppliers, not consumers. High rates selects for the largest corporations that can weather the storm of higher costs (tariffs, interest rates) better than smaller competitors which concentrates pricing power and exacerbates inflation further. High rates are also a stimmy check to bond holders (70% are domestic), more than offsetting any lending constraint, which contributes to a k-shaped economy.

Quote
Seems like the primary issue facing suppliers is tariff-related cost increases and floundering demand metrics, both of which would get harmed, not aided, by reductions in rates, even if they are measurably above R-star, which no reasonable measure that isn't a Miran brainpot hackjob currently shows....

Interest rates are a cost same as tariffs, taxes, labor. If raising rates lowers prices then why not raise taxes and the minimum wage with the same expectation? It's nonsense which is why it has never once worked.

Miran is totally correct.
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Momofrmnyc
Mar 25, 2026 3:54pm
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Quoting Trader#DE66
{quote} Not convinced he wont stay on. All depends on what happens with the Powell investigation but he resigned his post in trump admin i dont think he would've done that without some sort of guarantee of a spot here
Whether he stays or not doesn’t really matter to me—everyone only has one vote, and it takes a majority to shift anything. Right now, the majority doesn’t feel that way, and that’s what ultimately counts.
At the end of the day, the average consumer isn’t focused on market expectations of inflation versus reported figures—they’re focused on what they’re actually experiencing, like rising gas prices.
FlyingTurtle
Mar 25, 2026 3:35pm
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Miran is correct.
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Momofrmnyc
Mar 25, 2026 3:31pm
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Miran - the weird lame duck.
Trader#DE66
Mar 25, 2026 3:47pm
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Quoting Momofrmnyc
Miran - the weird lame duck.
Not convinced he wont stay on. All depends on what happens with the Powell investigation but he resigned his post in trump admin i dont think he would've done that without some sort of guarantee of a spot here
Reply
Trader#29B4
Mar 25, 2026 8:30pm
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Quoting FlyingTurtle
{quote} Miran's sensible reasoning could convince others. The majority have the view that to handle supply shortages they should impose austerity to bring demand down, which requires a recession to accomplish. Miran's view is to accommodate suppliers to increase supply to lower prices, which is the reasonable view.
This argument only holds water if suppliers are actually constrained by lending rates and lending rates alone; I'm not aware of any model on the books that would show that the main constraint on current industry is a lack of access to capital. Seems like the primary issue facing suppliers is tariff-related cost increases and floundering demand metrics, both of which would get harmed, not aided, by reductions in rates, even if they are measurably above R-star, which no reasonable measure that isn't a Miran brainpot hackjob currently shows.
Reply
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