Fed's Milan says it supports a 50 basis point rate cut this month, warns of trade risks

According to Huoxun Finance, on October 16, Federal Reserve Board Governor Milan said he supports a 50 basis point interest rate cut this month, reiterating that trade tensions are creating uncertainty for the economy and increasing downside risks to growth. In an interview on Thursday, Milan said: "If monetary policy remains at its current tight level and the economy suffers a similar shock, this will significantly amplify the negative impact of the shock." He added that he hopes to support a 50 basis point rate cut at the policy meeting on October 28-29, although the committee is more likely to choose a 25 basis point cut as it did in September. "I think we are likely to see three 25 basis point rate cuts this year," he said. Federal Reserve Chairman Powell has previously hinted that the Fed is planning another 25 basis point rate cut this month, given that slowing hiring could lead to higher unemployment. However, some policymakers still expressed the need for caution, as inflation remains above the 2% target.