[Federal Reserve Governor Milan: The Necessity of Supporting a 50 Basis Point Rate Cut Has Weakened] According to Golden Finance, Federal Reserve Governor Milan stated that as recent adjustments in monetary policy progress, the necessity he previously advocated for a 50 basis point rate cut has weakened. Milan pointed out that there have been some abnormal fluctuations in previous inflation data, some of which are related to the government shutdown. These abnormal signals indicate that the Federal Reserve's policy stance should adjust towards a more accommodative direction. He emphasized that there is currently no risk of the economy entering a recession in the short term, but believes that the neutral interest rate level has clearly declined, and monetary policy must reflect this structural change. If the policy rate fails to continue to decline to approach the new neutral level, it may instead increase the risk of the economy falling into recession. In addition, regarding his own term issues, Milan candidly admitted that he is uncertain whether he will remain in office. He stated: If by the end of January there is still no confirmed successor, I will assume I will continue to serve.
