Source: Barron’s

Date Published: 09.26.2025

Link: Last Year, Trump’s New Man at the Fed Thought Rates Were Too Low. What Changed.

Barron’s says Fed governor Stephen Miran now argues the neutral real rate r* is near zero, which implies today’s fed-funds rate is tighter than the Fed thinks and should move toward about 2 to 2.5 percent. He links a recent easing in rent pressure to lower immigration, while critics counter that the larger force has been the inability to buy homes, which pushes would-be owners into rentals. For housing affordability, faster rate cuts could lower mortgage rates and monthly payments, and might cool rent growth if fewer households are forced to rent, yet without more housing supply, cheaper financing can spur demand and lift prices, limiting the net gain.