On October 3, local time, CCTV reporters learned that Federal Reserve Governor Stephen Miran once again called for a more radical path of interest rate cuts, but at the same time emphasized that his differences with other decision-makers "are not as big as the outside world imagined."
In an interview, Milan said that if the policy deviates from the track, it should be “adjusted at a relatively rapid pace”. he believes that current policies are actually more restrictive to growth and therefore require a more relaxed monetary environment.
The Federal Reserve announced in September that it would lower the federal fund interest rate target range by 25 basis points to between 4.00% and 4.25%. At the interest rate meeting, Milan, chairman of the White House Economic Advisory Committee nominated by President Trump and just serving as the Federal Reserve’s chairman, voted only to oppose the rate reduction, saying he believed the rate should reach 50 basis points.
Most officials, however, are cautious about radical interest rate cuts, concerned that Trump’s tariff policy is pushing inflation. Chicago’s Federal Reserve Chairman Gullsby warned that recent inflation in the service sector has risen and job growth has weakened, and the Federal Reserve is in a “tough situation.” Chairman Powell also noted after the September meeting that hardly anyone supports a one-off cut of 50 basis points.
Milan responded that he and his colleagues 'long-term policy goals were basically the same and just wanted to "get to that level sooner." He also downplayed the risk of too fast interest rate cuts leading to further strengthening of financial markets, emphasizing that financial conditions are not fully loose, for example, housing financing is still relatively tight. (CCTV reporter Xu Dezhi)