Fed Governor's Dismissal of Tariff Inflation Threatens Economic Liberty

The Facts:

Federal Reserve Governor Stephen Miran, in an October 31, 2025 interview with The New York Times, expressed controversial views about tariffs and inflation during a discussion about recent Fed policy decisions. Miran explicitly stated that he does not believe tariffs have driven “a meaningful amount of inflation” thus far, though he acknowledged this could change in the future. More strikingly, he argued that even if tariffs were to cause significant inflation, the Federal Reserve should “look through” such price increases rather than responding with monetary policy adjustments. Miran justified this position by comparing tariff-driven inflation to fiscally driven price changes, asserting that monetary policy should only respond to supply-and-demand imbalances and aggregate demand management, not to policy-induced price distortions. The interview context included discussion of dissenting opinions within the Fed regarding recent rate decisions, indicating ongoing debates about how to address evolving economic conditions.

Opinion:

Governor Miran’s comments represent a dangerous departure from sound economic principles and a troubling disregard for how protectionist policies undermine economic freedom and consumer welfare. His willingness to “look through” tariff-induced inflation demonstrates a shocking indifference to how government interference in markets harms American families and businesses. Tariffs represent exactly the kind of government distortion that central bankers should loudly oppose—they restrict free trade, raise consumer prices, reduce economic efficiency, and ultimately diminish individual economic liberty.

What makes Miran’s position particularly alarming is his apparent belief that the Fed should ignore inflation regardless of its source. This creates a permissive environment for destructive trade policies that punish consumers and businesses alike. The Federal Reserve’s mandate includes price stability, and that responsibility shouldn’t have exceptions for politically convenient inflation sources. When government policies artificially drive up prices, the central bank must acknowledge this reality rather than pretending these increases don’t demand policy responses.

True economic freedom requires both free markets and stable currency values. Dismissing tariff impacts as irrelevant to monetary policy represents a failure to uphold both principles. We need Federal Reserve officials who will defend economic liberty against all threats—whether they come from market imbalances or government interventions. Miran’s comments suggest a worrying tolerance for the latter that could embolden further protectionist measures. The American people deserve monetary policymakers who recognize that all inflation—regardless of origin—erodes purchasing power and economic security. Our institutions must stand firm against any policies that undermine the very foundations of free market capitalism and individual economic freedom.