The US Fed governor newly appointed by President Donald Trump argued Monday for significantly lower interest rates, signaling that concerns over inflation may be overblown.

"I believe the appropriate Fed funds rate is in the mid-two percent area, almost two percentage points lower than current policy," said Federal Reserve Governor Stephen Miran at the Economic Club of New York.

In his first policy speech since joining the central bank, Miran warned that "leaving short-term interest rates roughly two percentage points too tight risks unnecessary layoffs and higher unemployment."

Last week, Miran was the sole dissenter to the Fed's decision to cut interest rates by a quarter point, instead favoring a larger half-point reduction.

On Monday, he laid out an argument on why the "neutral rat

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