The Federal Reserve Board Member Milan warns that trade uncertainty is escalating and calls for a faster pace of interest rate cuts.

BlockBeats News, October 15th - Federal Reserve Governor Milan said on Wednesday that recent trade tensions have intensified the uncertainty surrounding economic growth prospects, making it more important for policymakers to cut interest rates as soon as possible. Milan said at an event hosted by CNBC: "The downside risks are now greater than a week ago, and I think we have a responsibility to reflect that in our policy." He pointed out that trade policy uncertainty has brought about "new tail risks."

Milan added: "I wouldn't say that I now wish for a lower interest rate level than a week or a month ago. However, as the risk balance changes, I think it has become more urgent to bring policy back to a more neutral position as soon as possible." Milan had previously stated that he hoped to cut the benchmark interest rate by another 1.25 percentage points by the end of this year. According to the latest median forecast of 19 Fed officials, there will be two more 25-basis-point rate cuts in 2025. Milan said on Wednesday that two more rate cuts this year "seem realistic." (FXStreet)