The Federal Reserve Board of Governors member Milan recently expressed a series of striking viewpoints, emphasizing the necessity to rapidly drop the interest rate. He pointed out that the current policy interest rate level (between 4% and 4.25%) is far higher than what he considers the "neutral" level, and such a highly restrictive policy may increase the likelihood of the economy facing downward risks.



Milan emphasized the importance of quickly adjusting the Intrerest Rate, stating: "Under restrictive monetary policy, the economy is more susceptible to negative shocks. I believe there is no need to take on such risks."

What is even more concerning is that Milan has made a bold suggestion: to continuously drop the interest rate by 50 basis points in a short period of time. He explained: "We can continuously drop the interest rate by 50 basis points in a very short time, and then reassess the monetary policy situation. Once the target is reached, we will take more cautious actions."

This viewpoint has sparked widespread discussion in the financial sector. Some analysts believe that such an aggressive drop in the Intrerest Rate may impact inflation expectations, while others argue that, given the current economic environment, this may be a necessary move.

Milan's remarks reflect concerns within the Fed about the economic outlook, while also hinting at a potential shift in future monetary policy. However, whether this potential policy change will receive support from other decision-makers at the Fed remains to be seen.

With the continuous updates of economic data and changes in the global economic situation, the policy direction of the Fed will continue to be the focus of market attention. Investors and economists are closely monitoring every move of the Fed to predict future economic trends and investment opportunities.
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SatoshiSherpavip
· 09-25 21:31
The interest rate cut came too late.
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