After Powell released the hawk, Federal Reserve Governor Milan "sang in opposition": monetary policy is still too tight and interest rates should be greatly reduced.

Federal Reserve Board member Milan stated that the monetary policy is still contractionary, and he will continue to advocate for a significant reduction in interest rates. Milan said on Monday, "The Fed's policy is too tight, and there is still a large gap between the current policy level and the neutral level. Compared to some other members of the committee, I am more optimistic about inflation expectations, so I believe it is not necessary to maintain such a strict policy." Milan has repeatedly called for a more accommodative monetary policy, opposing the decision to lower the Fed's policy rate by 25 basis points in September and October, and instead advocating for a 50 basis point rate cut. Milan reiterated that the neutral policy rate is much lower than the current level and should be achieved through a series of 50 basis point rate cuts. Last week, Federal Reserve officials cut interest rates by 25 basis points for the second consecutive month. Concerns about the labor market were raised after a significant slowdown in US job growth throughout the summer. Federal Reserve Chairman Powell said in an interview with reporters after the monetary policy meeting last week that another rate cut in December is "not a foregone conclusion." Subsequently, some other Federal Reserve policymakers expressed their concerns, believing that if the Fed goes too far in lowering interest rates, it could lead to persistently high inflation. In contrast, Milan's advocacy for lower interest rates has added a new argument. He pointed out that recent signs of tightness in credit markets may indicate that monetary policy is still too tight. He said, "When a series of seemingly unrelated credit issues are masked for a period of time, and then suddenly exposed, it reflects the direction of monetary policy." Milan's decision to temporarily step down as chairman of the White House Economic Advisory Committee and instead serve in a temporary position at the Federal Reserve has been criticized. This has raised questions about whether he is maintaining independence from the Trump administration. Milan said, "The more you maintain a tight policy stance, the more likely you are to trigger an economic recession due to monetary policy itself."