When the recently appointed Federal Reserve Governor Stephen Miran spoke at the Economic Club in New York this September, he broke one of the Fed’s unspoken rules. Dissent is officially noted in the central bank’s meeting minutes, but the identity of the dissenters is hidden in anonymous “dot plots.” But Miran revealed himself to be the solitary deviating forecast, the lone “Miran dot” signaling opposition to where the Fed was heading.
“The world the forecasts are trying to measure no longer exists.”
He used the moment to challenge the foundations of United States monetary policy. “I think it’s important to take these models seriously, not literally,” he said. He warned that models do not take into account the scale and speed of policy changes in light of the Trump administration’s re-election. The problem with the…
