Fed Governor Michelle Miran is set to present her argument for a 50 basis point cut to the Federal Open Market Committee (FOMC) on Monday. In an interview with CNBC, she highlighted several key points that will be included in her presentation. According to UBS Securities and Treasury (UBS S&T), Miran’s arguments are centered around the dual mandate of the Federal Reserve, which includes promoting maximum employment and price stability.

Miran believes that tariffs will be transitory for inflation, and therefore, should not cause higher inflation expectations. She also expects to provide a detailed explanation of how she can have a better growth outlook while still requiring much lower interest rates. Additionally, Miran is concerned about the weakness of the labor market, which she plans to address through her argument for a 50bp cut.

In her presentation, Miran will likely delve into the specific factors that are driving her call for a rate cut. These may include recent economic data, such as GDP growth and employment numbers, as well as broader trends in the economy. She may also address potential risks to the economy and how a rate cut could help mitigate these risks.

Overall, Miran’s argument for a 50bp cut is centered around her belief that the current economic environment warrants a more accommodative monetary policy stance. By providing a comprehensive view of her thoughts on this topic, she aims to provide insight into the reasoning behind her decision and to help inform the FOMC’s decision-making process.