Federal Reserve Governor Mian: The necessity of interest rate cuts has weakened, but the neutral interest rate has moved downwards

Federal Reserve Governor Mian recently stated that the current necessity to support a 50 basis point rate cut has decreased. He pointed out that there were abnormal signals affected by factors such as government shutdowns during previous inflation fluctuations, and monetary policy should be adjusted towards a more accommodative direction. Mian believes that the neutral interest rate has structurally moved downwards, and if the policy rate is not continuously adjusted downwards accordingly, it may increase the risk of economic recession. Regarding his own term, he stated that if no successor is confirmed by the end of January, he will continue to serve.