Economists reject Trump Fed Pick's projections for ignoring AI spending, inflation

Steve Miran, Donald Trump’s pick for the Federal Reserve board, is under fire after pushing for rate cuts that go way beyond what markets ￰0￱ Cryptopolitan reported , he voted for a sharp cut last week, then doubled down in a speech on Monday where he laid out his full ￰1￱ wants interest rates cut to 2.5%, nearly two percentage points below the current range of 4% to 4.25%. That puts him at odds with just about everyone—Fed officials, investors, and ￰2￱ framed his case around Trump’s economic record, saying Trump’s policies (cutting immigration, lowering government borrowing, and slashing regulations) have changed the ￰3￱ enough to justify lower ￰4￱ back it up, he plugged his assumptions into the Taylor Rule, a tool economists use to calculate the ideal interest ￰5￱ conclusion?

Rates are too high and need to fall ￰6￱ says lower immigration and less borrowing require cheaper money In his Monday speech, Steve said the U. S. doesn’t need as much investment anymore because immigration has dropped. “An economy with fewer workers doesn’t need to build as much,” he ￰7￱ immigration, he argues, means less pressure on resources, which would bring inflation down and support lower ￰8￱ also pointed to Trump’s reduced ￰9￱ the government borrows less, it competes less with private businesses for ￰10￱ also pushes rates ￰11￱ claimed that the Trump White House made progress here, despite the fact that rising tariffs were the main way revenue was ￰12￱ even he admitted that tariffs lose strength over time, as businesses adjust to avoid ￰13￱ also argued that fewer regulations mean the economy runs more efficiently, reducing inflation pressure.

“If the supply side of the economy improves, the Fed doesn’t need to lean as hard,” he ￰14￱ he didn’t mention Trump’s decision to inject federal money into Intel, the chipmaker, in what many saw as partial nationalization, something that goes against the idea of free ￰15￱ economists and markets push back on Steve’s numbers Other economists have pointed out that the same Taylor Rule Steve used gives wildly different results depending on how it’s set ￰16￱ Atlanta Fed’s own estimates range from 4.1% to 6.25%, depending on what inputs are ￰17￱ if you subtract 1 or 2 percentage points for Trump’s policy changes, you still land at or above today’s rate.

What’s more, Steve himself said last year that r-star, the neutral interest rate, was higher than the Fed ￰18￱ blamed it on rising AI investments and the effects of ￰19￱ of those trends have only gotten stronger, but he ignored them in his latest ￰20￱ inconsistency has raised questions among economists and ￰21￱ clearly aren’t buying what Steve is selling. Ten-year Treasury inflation-protected securities haven’t moved the way they would if traders believed his ￰22￱ said yields should drop, making those bonds worth about 10% more, but there’s no sign of that ￰23￱ traders haven’t reacted either. Steve’s logic says a looser Fed and falling yields should weaken the dollar, but the currency remains ￰24￱ markets have also kept moving based on other signals, not his ￰25￱ claimed equities should soar under his model, but there’s been no such ￰26￱ broader economy also doesn’t look like it needs ￰27￱ is on track to top 3% this quarter, based on the Atlanta Fed’s GDPNow ￰28￱ is rising ￰29￱ while the job market is showing some softening, households and businesses are still borrowing from banks.

There’s no major sign that high rates are choking off activity. It’s possible that Steve’s arguments could play out over ￰30￱ policy takes a while to ripple through the economy. Trump’s policies, many of which were rolled out in uneven bursts, might still affect things in the ￰31￱ for now, financial markets aren’t reacting to Steve’s case… and neither are his colleagues at the ￰32￱ your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.