Federal Reserve Governor Milan Calls for Another Major Rate Cut in December

On November 11th, Federal Reserve Governor Milan stated on Monday. Considering the softening labor market and declining inflation, he believed that the Fed should cut interest rates by 50 basis points in December. He regarded a 25 basis point cut as the "minimum" appropriate action. Milan pointed out: "We have obtained new inflation data, which is better than expected. This indicates that compared to the FOMC meeting in September, it is reasonable to adopt a more moderate policy stance. At that time, the majority of decision-makers thought that by the end of the year, there should be a total of three rate cuts, each being 25 basis points." The Fed has already cut rates by 25 basis points in both September and October. However, Milan emphasized that the unemployment rate is on the rise, "owing to overly tight policies. Therefore, we must adjust the policy, continuously and gradually cut rates to prevent this tightening from imposing greater pressure on the economy and further raising the unemployment rate." (FXStreet)