The Federal Reserve in Milan stated that trade uncertainties have intensified, and called for accelerating the pace of interest rate cuts.

ChainThink news, October 15, Fed Governor Millan stated on Wednesday that the recent escalation of trade tensions has increased the uncertainty surrounding economic growth prospects, making it more important for policymakers to cut interest rates as soon as possible. Millan said at an event hosted by CNBC: "The downside risks are greater now than a week ago, and I think we have a responsibility to reflect this in our policy." He pointed out that uncertainties in trade policies have brought about "new tail risks."

Millan added: "I would not say that the interest rate level I hope for now is lower than a week or a month ago. However, with the change in the risk balance, I think it is more urgent to bring the policy back to a more neutral position as soon as possible." Millan previously expressed a desire to lower the benchmark interest rate by another 1.25 percentage points by the end of this year. According to the median forecast of the 19 Fed officials, there will be two more 25-basis-point rate cuts in 2025. Millan said on Wednesday that two more rate cuts this year "seem realistic." (Jinshi)