Fed’s Miran: Deregulation last year was substantial

Federal Reserve (Fed) Governor Stephen Miran said that he thinks deregulation should put downward pressure on prices and stated that if central banks don't accommodate the impact of deregulation, it makes policy too tight, in a speech at the Delphi Economic Forum in Athens on Wednesday.

Key takeaways

Deregulation should put downward pressure on prices, another reason for US central bank to cut interest rates.

Deregulation amounts to a positive supply, productivity shock, giving the economy more capacity and easing price pressures.

Deregulation last year was 'substantial' and is expected to continue.

If central banks don't accommodate impact of deregulation it makes policy too tight, with needless damper on growth.

perhaps 30% of regulations could be eliminated by 2030, cutting inflation by perhaps half a percentage point a year."