Federal Reserve Governor Milan: Expects a Cut of Around 150 Basis Points in 2026

BlockBeats News, January 8th, Federal Reserve Governor Milan stated that he expects to cut rates by 150 basis points this year to boost the labor market. Milan, in describing the restrictive monetary policy, said that the core inflation rate may remain around 2.3%, indicating that Federal Reserve officials still have room for further rate cuts. Milan stated that the core inflation rate fluctuates within our target range, which bodes well for the overall inflation trend in the medium term. "About 1 million Americans are currently unemployed, but if they are employed, it will not cause unnecessary inflation," Milan said.

He indicated that it is currently unclear whether he will continue to stay at the Federal Reserve after the end of his term. Many Federal Reserve watchers expect Trump to use Milan's current position to arrange his chosen nominee for the next chairman on the board. However, if Powell leaves the Federal Reserve after his term as chairman ends in May, it may free up another seat. (FX Street)