FOMC Minutes - 2025-10-07

Ah, the unbearable lightness of being Stephen Miran. He dissented from the 1/4% rate cut decision, wanting 1/2%, because "the neutral rate of interest had fallen due to factors such as increased tariff revenues that had raised net national savings." Where is it written that raising national savings reduces the neutral rate? And in what world does taking tariff payments out of my checking account and putting them into the government's account at the Fed produce anything like a net gain in national savings in the first place? With his arrival on the board, the junk science that has dominated Fed discourse for decades already just got a lot junkier, and lot more brazen.