Federal Reserve's Milan says rising trade uncertainty calls for faster rate cuts

BlockBeats News, on October 15, Federal Reserve Governor Milan stated on Wednesday that the recent escalation in trade tensions has increased uncertainty over the economic growth outlook, making it more important for policymakers to cut interest rates as soon as possible. Speaking at an event hosted by CNBC, Milan said: "The downside risks are now greater than a week ago, and I believe we have a responsibility to reflect this in our policy." He pointed out that uncertainty in trade policy has introduced "new tail risks."

Milan added: "I wouldn't say that I now want a lower interest rate level than a week or a month ago. However, as the balance of risks shifts, I think it has become more urgent to return policy to a more neutral stance as soon as possible." Milan previously stated that he hopes to cut the benchmark interest rate by another 1.25 percentage points by the end of this year. According to the latest median forecast from the 19 Federal Reserve officials, there will be two more 25 basis point rate cuts in 2025. Milan said on Wednesday that two more rate cuts this year "seem realistic." (Golden Ten Data)