Federal Reserve Governor Milan suggests a 150 basis point rate cut this year

Federal Reserve Governor Milan stated that there should be a 150 basis point rate cut this year to boost the labor market. He believes that core inflation may remain around 2.3%, and that monetary policy is restrictive, leaving room for rate cuts. Milan pointed out that about 1 million Americans are currently unemployed, but employment will not trigger unnecessary inflation. He is still uncertain whether he will remain at the Federal Reserve after his term ends, and the public expects that Trump may use Milan's seat to appoint the next chair. If Powell leaves after his term as chair ends in May, there may be another vacant seat at the Federal Reserve.