Fed Governor Milan: We can cut interest rates by 50 basis points in a short period of time

Fed Governor Milan said that if interest rates are not lowered quickly, the Fed will face the risk of damaging the economy. He believes that the Fed's current policy rate is between 4% and 4.25%, which is highly restrictive and far higher than his estimate of the so-called "neutral" level. Milan said, "That is why it is so important to start adjusting interest rates faster rather than slower." "When monetary policy is in a restrictive stance, the economy is more vulnerable to downward shocks. In my opinion, there is really no need to take this risk." He said: "My view is that we can cut interest rates by 50 basis points in a short period of time and then readjust monetary policy, and once we reach our target, we will act more cautiously." (Jinshi)