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Federal Reserve Governor Stephen Miran expressed confidence that the central bank’s plans to ease monetary policy will not dangerously inflate already elevated asset prices. Speaking to Reuters on the sidelines of the Institute of International Finance meeting on Thursday, Miran said asset prices are influenced by a variety of factors beyond monetary decisions.
“There’s a lot of things that drive asset prices,” Miran stated. “Monetary policy is one of them, but fiscal policy, regulatory changes, and global developments also play major roles.” He emphasized that while some analysts worry that lowering interest rates could fuel another asset boom, the Fed’s primary focus remains on achieving its dual mandate — price stability and maximum employment.
Miran noted that when evaluating financial conditions that most impact the real economy, housing markets stand out as a critical factor. “When I think about the financial conditions that matter most for the real economy, it’s those related to housing — and those look a lot less easy,” he added.
His comments come as the Federal Reserve faces pressure to balance easing measures with concerns about overheated markets and persistent inflation. Despite record-high valuations in equities and real estate, Miran believes broader economic fundamentals — rather than monetary easing alone — drive current price trends.
Market observers continue to debate whether the Fed’s future policy shifts could reignite speculative behavior in risk assets. However, Miran’s stance suggests that the central bank remains confident in its approach, prioritizing inflation control and labor market strength over fears of an asset bubble.
By reaffirming the Fed’s commitment to economic stability, Miran’s remarks offer insight into the nuanced view policymakers hold on asset valuations amid evolving monetary strategies.
