BlockBeats news, on December 15, Federal Reserve Governor Milan reiterated that the Fed's policy stance is too tight for the economy, noting that the inflation outlook is good, while some warning signs have appeared in the labor market.
Milan stated that he expects housing inflation to ease as rent increases fall back to normal levels from the peaks during the COVID-19 pandemic. He believes that, due to a cooling labor market, inflation in the service sector is unlikely to face upward pressure. Some driving factors for service sector inflation, such as portfolio management fees, reflect statistical anomalies rather than actual price changes felt by consumers.
Talking about the labor market, Milan stated: "Experience shows that the deterioration of the labor market can happen very quickly, is non-linear, and is difficult to reverse." "Part of the reason is that monetary policy has several quarters of lag effects, therefore, as I have argued, a quicker easing of policy will appropriately bring us closer to a neutral position." (Jin Ten)
