Federal Reserve Governor Stephen Miran on Monday signalled a meaningful shift toward easing monetary policy, telling CNBC at the Invest in America Forum that a 50 basis point reduction in the policy rate would be appropriate in December, while adding that, at a minimum, the central bank should cut rates by 25 basis points. The remarks come as the Fed weighs incoming inflation and labor market data against the risk of a slowdown in growth.

"Nothing is certain. We could get data that would make me change my mind between now and then," Miran said. "But failing new information that's made me update my forecasts, looking out in time, yeah, I would think that 50 is appropriate, as I have in the past, but at a minimum 25."

Miran's comments are notable for their explicit endorsement of a larger move than the incremental quarter point that many investors and some policymakers have treated as the baseline option. A half point cut is equivalent to 50 basis points. It would be the most aggressive single reduction since the rapid easing episodes during previous cycles, and would signal a stronger effort to cushion the economy against weakening demand.

Economists and market strategists say Miran's stance reflects a central bank balancing act. After an extended period of tightening that pushed borrowing costs well above levels seen earlier in the decade, officials have repeatedly emphasized that future steps will be data dependent. Recent months have seen inflation measures moderate from their post pandemic peaks while the labor market remains comparatively tight. Those mixed signals make the December decision highly sensitive to incoming consumer price and payroll reports.

For markets a larger cut in December would tend to lower short term interest rates directly, while its impact on longer term yields would depend on investors' inflation expectations and economic growth forecasts. Lower policy rates would generally ease financing costs for households and businesses and could provide support for risk assets. But investors also watch the trajectory of inflation closely, because a sharper easing of policy could rekindle price pressures if demand holds up.

Policy implications extend to the Federal Reserve's credibility and flexibility. A decisive move now, proponents argue, could head off a deeper slowdown and reduce the need for more abrupt action later. Opponents warn that easing too quickly risks reversing the progress made in reining in inflation and could force the Fed back into tightening if price pressures reemerge.

With the December policy meeting months away, Miran's public preference frames the debate inside and outside the Fed. Officials have made clear that they will monitor key indicators including core inflation, wage growth, and labor market participation. Ultimately the committee will weigh whether the data justify a 50 basis point cut, a smaller 25 basis point adjustment, or continued patience.

Markets and policymakers alike will be watching each new data release carefully, knowing that Miran and his colleagues have underscored the central role of evolving evidence in choosing the next steps for monetary policy.