Fed Governor Milan: Regulatory Easing Will Bring Downward Price Pressure, Providing Grounds for Rate Cuts

Odaily News Fed Governor Milan stated that easing regulations should exert downward pressure on prices, which is another reason for the U.S. central bank to cut interest rates. By 2030, perhaps 30% of regulations could be eliminated, potentially reducing inflation by half a percentage point annually. Regulatory easing is equivalent to a positive supply and productivity shock, providing the economy with more capacity and alleviating price pressures. (Jin10)