Milan Calls for Loose Market Rescue and Says Interest Rates Should Be Cut by 150 Basis Points This Year

Odaily News Federal Reserve Governor Milan stated that he expects a 150 basis point interest rate cut this year to boost the labor market. When describing monetary policy as restrictive, Milan said the underlying inflation rate might remain around 2.3%, indicating that Fed officials still have room for further rate cuts. Milan noted that the core inflation rate is fluctuating within our target range, which is a good indicator of the medium-term trend for overall inflation. "Approximately 1 million Americans are currently not working, but if they were employed, it would not cause unnecessary inflation," Milan said. He mentioned that it is still unclear whether he will remain at the Fed after his term ends. Many Fed watchers expect Trump to use Milan's current seat to place his chosen next chair candidate on the board. However, if Powell leaves the Fed after his chair term ends in May, it could open up another seat. (Jin10)