FILE PHOTO: Newly appointed Federal Reserve Governor Stephen Miran speaks at The Economic Club of New York in New York City, U.S., September 22, 2025. REUTERS/Shannon Stapleton/File Photo
Federal Reserve Governor Stephen Miran, appointed by President Donald Trump, said Wednesday the U.S. economy has lost momentum, challenging the administration’s repeated claims of strength.
In an appearance at CNBC’s Invest in America Forum, Miran said the labor market has weakened. He pointed to uncertainty stemming from policy decisions — including tax changes and trade measures — as a key drag on growth.
“The economy was weaker in the first half of the year versus where it was last year,” Miran told CNBC, in remarks highlighted by the Daily Beast.
While avoiding direct criticism of Trump, Miran highlighted administration-driven factors, including a record tax hike and ongoing trade disruptions, as contributors to the downturn.
“Yes, the labor market continued to weaken in the first half of the year,” he said. “I think part of that was due to uncertainty over policy. We might have had the biggest tax hike in history, so maybe there were firms that were holding off on investing until the tax hike was done.”
Miran’s remarks contrast with Trump’s public messaging.
As recently as last week, the president claimed, “America has the best economy we’ve ever had,” and insisted he had “defeated inflation.” Independent data and consumer sentiment show otherwise, with inflation remaining steady and prices — including groceries — continuing to rise, partly due to tariffs imposed during Trump’s second term.
Speaking further on those tariffs, Miran suggested they contributed to a chilling effect on investment.
“We also had the biggest rearrangement to global trading policy in half a century,” he said. “While those deals were being negotiated and while people were waiting to see where tariff rates would shake out, it wouldn’t surprise me if people held off on making some decisions. I do think uncertainty contributes to some of the weakness we saw in the first half of the year.”
Recent developments have worsened the outlook. China’s announcement of new export restrictions, seen as retaliation for Trump’s proposed 100 percent tariffs on all Chinese imports, has reignited trade tensions.
“There’s now more downside risks than there was a week ago, and I think it’s incumbent upon us as policymakers to recognize that should get reflected in policy,” Miran said.
Like Trump, Miran has advocated for interest rate cuts. On Wednesday, he said two more cuts “sounds realistic."