Lates News

Federal Reserve Governor Milan stated that he believes continuing to cut interest rates is still appropriate because it is still too early to judge the impact of the Middle East conflict on the US economy. Milan said in an interview on Wednesday, "I believe it is appropriate to continue taking action. So far, the events over the weekend have not led me to change any forecasts regarding the labor market or inflation." Following the weekend attacks on Iran by the US, oil prices surged and investors lowered their expectations for a rate cut by the Federal Reserve in 2026. Some Fed officials who spoke this week hinted at increased uncertainty in the outlook - Fed watchers interpreted this as the central bank possibly maintaining interest rates unchanged for a longer period. Even before the attacks on Iran, several officials had emphasized signs of stability in the labor market and suggested waiting for further signals of inflation falling to the 2% target before authorizing further rate cuts. Milan, however, holds the opposite view. "When you look at the overall data on the labor market, I still have reason to believe it needs more support from monetary policy," he said.