As markets brace for the release of November’s Consumer Price Index (CPI), Federal Reserve Governor Stephen Miran is pushing back against the prevailing view that inflation remains stubbornly above target.
His remarks come only days before the CPI data release on Thursday. This US economic data is likely to influence investor sentiment for Bitcoin.
Stephen Miran: The Fed Is Fighting the Wrong Inflation Ahead of CPI
Data on the CME FedWatch Tool shows markets are rethinking their interest rate bets, with traders wagering a 75.6% probability of no change in the January 2026 Fed meeting.
It comes as Miran argues that underlying inflation is already running close to the Fed’s 2% goal. He says that much of the remaining overshoot is driven by statistical distortions rather than excess demand.
“Underlying inflation is already running very close to the Fed’s 2% target,” Miran said in a post on X. “The majority of excess inflation over target is due to quirks of the statistical measurement process, not excess demand.”
At the center of Miran’s argument is shelter inflation. This is one of the largest and most persistent contributors to core inflation measures.
He noted that the Fed’s preferred Personal Consumption Expenditures (PCE) index captures housing costs for all tenants. This means it lags behind real-time market rents, which only reset when leases are renewed. According to Miran, that lag is now distorting the inflation picture.
Miran also addressed core non-housing services inflation, highlighting portfolio management fees as a key example. The policymaker argues that these artificially boost core PCE despite long-term fee compression in the asset management industry.
Because these fees are measured based on assets under management, rising equity markets can mechanically lift measured prices. This could happen even when actual costs to consumers are falling.
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