The Federal Reserve Board of Governors Milan again called for a significant interest rate cut in December.

On November 11, Fed Governor Milan stated on Monday that given the softening labor market and declining inflation, the Fed should cut the interest rate by 50 basis points in December. He believes that a reduction of 25 basis points is the “minimum appropriate measure.” Milan pointed out, “We have received new inflation data, which is better than expected, indicating that it is reasonable to adopt a more moderate policy stance compared to the September FOMC meeting. At that time, most policymakers believed that three cumulative rate cuts of 25 basis points each should be made by the end of the year.” The Fed has already cut rates by 25 basis points in both September and October. However, Milan emphasized that the unemployment rate is rising, “The reason is that the policy is too tight. Therefore, we must adjust the policy and continue to gradually lower rates to prevent this tightening from putting more pressure on the economy, which would further increase the unemployment rate.” ( Jin10 )