Federal Reserve Governor Milan reiterated the need for interest rate cuts to address risks in the labor market.

Federal Reserve Governor Stephen Milan reiterated on Friday that the Fed should cut interest rates because inflation has cooled and monetary policy needs to offset risks to the labor market. Milan stated that the labor market is slowing, and "if this continues in this direction and we fail to adequately adjust policy to curb it, we will be in trouble by 2027." Milan is one of the most vocal supporters of rate cuts within the Fed. At last week's Fed meeting, he voted against a 50-basis-point cut, while most of his colleagues favored a smaller 25-basis-point cut. His term at the Fed ends on January 31.