Federal Reserve Governor Stephen Miran said Wednesday he still supports cutting interest rates, arguing it's too early to gauge the Middle East war's economic impact. Speaking on Bloomberg TV, Miran stated that recent events haven't altered his outlook for the labor market or inflation. He emphasized that monetary policy should continue providing support as the labor market still needs additional stimulus.

Oil prices surged after US and Israeli strikes on Iran over the weekend, prompting investors to reduce expectations for Fed rate cuts in 2026. Some Federal Reserve officials have expressed uncertainty about the economic outlook following the conflict, suggesting the central bank might delay further actions. The Bureau of Labor Statistics will release February employment data on Friday, which could influence future decisions.

Before the Iran strikes, several Fed officials noted signs of labor market stabilization and preferred waiting for more evidence that inflation would return to the Fed's 2% target before authorizing additional rate cuts. Miran, however, maintained his opposing view, arguing that the labor market still requires monetary policy support. His stance diverges from colleagues who are becoming more cautious about further rate reductions amid heightened geopolitical uncertainty.