Milan calls for accommodative monetary policy to rescue the market and says interest rates should be cut by 150 basis points this year
Svmuu News Federal Reserve Board Member Milan stated that he expects interest rates to be cut by 150 basis points this year to boost the labor market. Describing monetary policy as restrictive, Milan noted that core inflation is likely to remain around 2.3%, which means Federal Reserve officials still have room for further rate cuts.Milan noted that core inflation fluctuating within our target range is a good indicator of the direction of overall inflation in the medium term. “There are about 1 million Americans currently out of work, but if they were employed, it wouldn’t cause undue inflation,” Milan said.He noted that it remains unclear whether he will remain at Federal Reserve after his term ends. Many Federal Reserve observers expect Donald Trump to use Milan’s current seat to appoint his chosen successor to the board. However, if Jerome Powell leaves Federal Reserve after his term as chairman ends in May, another seat may become available. (Jin Shi)
Source:Odaily · Source Link
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