Newly appointed member by Trump, Stephen Milano gave a prominent assessment of monetary policy and economic outlook.
Milan said current monetary policy is very strict, adding that “the longer the restrictions, the greater the risk.”
Regarding recent tariffs, Milan claimed they have not created inflationary pressure. “The long-term impact of tariffs cannot be compared to the current environment,” he said. “People will ultimately see tariffs not increasing inflation,” he also argued that the decline in immigration also had a depressing effect on inflation.
Milan, which is attributed to uncertainty to the economic slowdown in the first half of 2018, noted that these uncertainties have largely disappeared. “We must encourage supply-side growth,” Milan said, adding that interest rate cuts will continue in the coming months. “We're in a loose cycle,” he said. “I try to convince other policymakers to cut interest rates more quickly.”
Meanwhile, former US President Donald Trump has once again targeted the Fed. He called Fed Chairman Jerome Powell “a bad president” and criticised the Fed for “more things.” Trump also predicted the government's closure due to the spending bill.
*This is not investment advice.
