Federal Reserve Governor Milan: The need for a 50-basis-point rate cut has diminished.

Federal Reserve Governor Milan stated that with the recent adjustments to monetary policy, the necessity of his previous advocacy for a 50-basis-point rate cut has diminished. Milan pointed out that some unusual fluctuations in previous inflation data were partly related to the government shutdown. These unusual signals indicate that the Fed's policy stance should be adjusted towards a more accommodative direction. He emphasized that he does not currently see the risk of an economic recession in the short term, but believes that the neutral interest rate level has clearly shifted downward, and monetary policy must reflect this structural change. If the policy rate fails to continue to decline to approach the new neutral level, it may actually increase the risk of an economic recession. Furthermore, regarding his own term, Milan admitted that he is still uncertain whether he will remain in office. He stated: "If no successor is confirmed by the end of January, I will assume that I will continue to serve." (Jinshi)