Fed Official Highlights Urgency for Interest Rate Cuts Amid Trade Tensions

According to BlockBeats, Federal Reserve Governor Milan emphasized the importance of reducing interest rates due to heightened trade tensions affecting economic growth prospects. Speaking at a CNBC-hosted event, Milan stated, "The downside risks are greater now than a week ago, and I believe we have a responsibility to reflect this in our policy." He noted that uncertainty in trade policy has introduced "new tail risks." Milan added, "I wouldn't say I want interest rates lower now than a week or a month ago. However, as the balance of risks shifts, I think it's more urgent to return policy to a more neutral position." Previously, Milan expressed a desire to lower the benchmark interest rate by 1.25 percentage points by the end of the year. According to the latest median forecast from 19 Federal Reserve officials, there are expected to be two more rate cuts of 25 basis points each in 2025. Milan remarked on Wednesday that two more rate cuts this year "seem realistic."