Fed Milan stated that trade uncertainties have intensified and called for a faster pace of interest rate cuts.

On October 15, Federal Reserve Board member Milan stated on Wednesday that the recent escalation of trade tensions has increased the uncertainty of the economic growth outlook, making it more important for policymakers to cut interest rates as soon as possible. Milan said at an event hosted by CNBC: "The downside risks are greater now than they were a week ago, and I think we have a responsibility to reflect that in our policy." He pointed out that trade policy uncertainty has brought about "new tail risks." Milan added: "I wouldn't say that I now hope for a lower interest rate level than I did a week or a month ago. However, as the balance of risks changes, I think it becomes more urgent to bring policy back to a more neutral position as soon as possible." Milan previously expressed hope to lower the benchmark interest rate by 1.25 percentage points by the end of this year. According to the latest median forecast from 19 Fed officials, there will be two more rate cuts of 25 basis points each in 2025. Milan stated on Wednesday that two more rate cuts this year "seem realistic." ( Jin10 )