Fed governor Milan: can cut interest rates by 50 basis points in a very short period of time
2025-09-25 12:24:09
Milan, a governor of the Federal Reserve, said the Fed risks damage to the economy if it does not cut interest rates quickly. He believes the Fed's current policy rate is between 4% and 4.25%, which is highly restrictive and much higher than his estimate of the so-called "neutral" level. "That's why it's so important to start adjusting interest rates faster rather than slower," Milan said. "When monetary policy is in a restrictive stance, the economy is more vulnerable to downside shocks. In my opinion, there's really no need to take that risk." He said: "My view is that we can cut interest rates by 50 basis points in a row over a very short period of time and then readjust monetary policy and move more cautiously once we hit our target."
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