Fed Governor Warns of Risks in Tight Monetary Policy Amidst Optimism on Inflation

Federal Reserve Governor Milan has raised concerns about the current state of monetary policy, stating that the neutral interest rate has declined, creating a more restrictive environment. He warns that failure to adjust policy could lead to significant risks. Despite these concerns, Milan expresses optimism regarding inflation projections compared to many other experts. The tightening of monetary policy presents substantial challenges and underscores the need for careful consideration and potential adjustments to ensure economic stability.