We've now heard from one of the most powerful economic policymakers in the country.

The newest member of the Federal Reserve Board of Governors, close ally of President Trump,

Stephen Myron made his case for more and larger interest rate cuts.

In a speech yesterday, last week, the Fed lowered interest rates by a quarter of a percentage point.

Myron wanted a bigger half-point cut. Marketplace with Nancy Marshall-Gensur has more on his thinking.

Stephen Myron says President Trump's policies are going to push prices down. So the Fed doesn't have to

worry that lowering interest rates will spark inflation. Speaking at the Economic Club of New York,

Myron said, for example, with immigrants leaving the country, there will be more housing available

and rents will fall. I believe forecasters have underappreciated the significant impact of

immigration policy on rent inflation. Myron also says deregulation will lower companies' costs, and there are, quote, unreasonable levels of concern at the Fed about the inflationary effects of President Trump's tariffs.

The upshot is that monetary policy is well into restrictive territory.

Leaving short-term interest rates roughly two percentage points too tight, risks unnecessary layoffs, and higher unemployment.

But Fitch ratings economist Olu Sinola doesn't buy Myron's arguments. He says there's still a lot

of uncertainty around tariffs and the total number of immigrants leaving the country. And

Sonola doesn't think Myron will be able to convince other Fed officials to follow his lead.

They have their own staff and their staff.

You know, they go out there.

They talk to people.

They talk to businesses.

My sense is that that carries a lot more weight.

Sonola says it doesn't help that Myron is only supposed to be at the Fed temporarily through January.

I'm Nancy Marshall Genser for Marketplace.

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