Federal Reserve Governor Milan: "ambitious" US relaxes regulations to support further easing of the Federal Reserve

Federal Reserve Board member Stephen Milan claims that the Trump administration's deregulation agenda provides an additional reason for the Federal Reserve to continue lowering interest rates. "I believe that the comprehensive deregulation taking place in the United States will significantly boost competition, productivity, and potential growth, allowing for faster economic growth without generating inflationary pressure," Milan said at an event in Athens, Greece. He cited several factors to support his view, including his expectation that housing inflation will slow down, as well as his lower estimate of the so-called "neutral interest rate." "This will support the continuation of accommodative monetary policy, but ignoring these effects would lead to unnecessary monetary tightening," he said regarding deregulation. Milan stated that based on the pace of the Trump administration's regulatory simplification in the first half of 2025, he estimates that by 2030, 30% of regulatory constraints in the Federal Code of Regulations will be eliminated.