BlockBeats News, October 16th, Federal Reserve Governor Milan stated that he supports a 50-basis-point rate cut this month and reiterated that trade tensions have brought uncertainty to the economy, increasing the downside risks to growth. Milan said in an interview on Thursday, “If monetary policy remains at its current restrictive level and the economy undergoes a similar shock, this will significantly amplify the negative impact of that shock.” He added that he hopes to support a 50-basis-point rate cut at the policy meeting on October 28th to 29th, although the committee is more likely to choose a 25-basis-point rate cut as in September.
He stated, “I believe we are likely to see three 25-basis-point rate cuts this year.” Federal Reserve Chairman Powell had previously hinted that, given the slowdown in hiring that could lead to an increase in the unemployment rate, the Fed is planning another 25-basis-point rate cut this month. However, some policymakers still argue for caution as inflation remains above the 2% target. (FXStreet)
