Milan: Can Cut Rates by 50 Basis Points in a Very Short Time

BlockBeats News, September 25th, Federal Reserve Board Governor Milan stated that if interest rates are not lowered quickly, the Federal Reserve will face the risk of economic damage. He believes that the current policy rate of the Federal Reserve is highly restrictive, ranging from 4% to 4.25%, which is well above his estimate of the so-called "neutral" level. Milan stated, "That's why it's so important to start adjusting rates more quickly rather than more slowly." "When monetary policy is in a restrictive stance, the economy is more vulnerable to downside shocks. In my view, there really is no need to take this risk." He said, "My point of view is that we can cut interest rates by 50 basis points consecutively in a very short period of time, then readjust monetary policy, and once we reach our target, we will act more cautiously." (FXStreet)