Federal Reserve Board Governor Milan has voiced support for a 50 basis point interest rate cut this month, citing trade tensions as a significant source of economic uncertainty and downside risks to growth. In a recent interview, Milan emphasized that maintaining the current tight monetary policy could exacerbate the negative effects of economic shocks. He expressed a preference for a substantial rate cut at the upcoming policy meeting on October 28-29, although he acknowledged the committee's inclination towards a more conservative 25 basis point reduction, similar to the decision made in September.
Federal Reserve Chairman Powell has indicated plans for a 25 basis point cut this month, in response to potential unemployment increases due to slowing hiring. Despite this, some policymakers urge caution, noting that inflation remains above the 2% target, which could complicate further rate reductions.
Fed Governor Milan Advocates for 50 Basis Point Rate Cut Amid Trade Concerns
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