Fed governor milan: judging the stance of monetary policy should not overemphasize the strength of financial marekt

It is inappropriate to overemphasize the strength of the stock market and corporate credit markets when assessing monetary policy, said Mr. Millan, the Fed governor, arguing that monetary policy is still too tight and increasing downside risks. "Financial marekt is driven by many factors, not just monetary policy," Mr. Millan said in an interview, explaining why he opposed a 25BP cut last week when he voted for a first-quarter rate cut in favour of a 50BP cut. He pointed out that with interest-rate sensitive sectors such as housing underperforming and parts of the private credit market under pressure, factors such as rising stock prices and narrowing corporate credit spreads "don't necessarily tell you where monetary policy stands". (Jin 10)