Federal Reserve President Stephen Milan joins “Morning with Maria” to discuss inflation, market optimism about interest rate cuts, his outlook on President Donald Trump’s tariffs, and more.
Federal Reserve President Stephen Milan said the U.S. economy is “calling for significant interest rate cuts” and warned that current monetary policy is “suppressing the economy” by keeping borrowing costs high and pushing up unemployment.
“I think the economy is calling for significant interest rate cuts to get monetary policy to neutrality as soon as possible. Monetary policy is putting restrictions on the economy. That’s holding the economy back. It’s gradually increasing the unemployment rate,” Milan said. About “Morning with Maria” Tuesday.
“I don’t think that’s appropriate given the economic outlook,” he continued. “So I think it’s the right thing to do to cut rates pretty quickly.”
At a meeting in late October, policymakers at the Federal Open Market Committee (FOMC) were divided over whether to cut interest rates further at their next meeting in mid-December amid concerns about a financial crisis. Weakening labor market and persistent inflation.
The Fed cut interest rates for the first time this year in September, followed by a second 25 basis point cut in October, leaving the benchmark federal funds rate unchanged at a range of 3.75% to 4%.
U.S. Federal Reserve Governor Stephen Millan gives a television interview on the floor of the New York Stock Exchange (NYSE) in New York, November 10, 2025. (Getty Images)
Milan pointed to recent employment numbers and low inflation risks, and argued for a series of 50 basis point (bp) rate cuts and an overall dovish stance.
“The rest of the committee is hoping that the recently received labor market data will move people in my direction that continuing to cut rates is appropriate. I think that’s what the data was asking for,” he said. September employment statistics exceeded expectations.
“If you look at where a lot of people are going with the economic outlook, and what we call the ‘dot’, you see that we’re getting closer to neutral interest rates. It’s just a question of how quickly we get there. I don’t see any inflation issues, so I’d like to get there pretty quickly,” Millan explained.
Federal Reserve President Christopher Waller also hinted in an exclusive interview with FOX Business’ Edward Lawrence that he supports another quarter-point rate cut in December as inflation cools and the labor market weakens.
“In my opinion, almost all of the excess inflation is a mirage. It is due to the imbalance between supply and demand in the housing market, and it is due to the lag in monetary policy.”
However, current monetary policy continues to put pressure on the US workforce.
“We need to recognize that the unemployment rate is on the rise, and that is the result of monetary policy being too tight,” Milan said.
“My concern now is that if we don’t continue to cut rates, and if we do so at a fairly rapid rate, monetary policy will nip these positive developments in the bud and we won’t get the kind of labor market recovery that I think is appropriate.”
CLICK HERE TO GET FOX BUSINESS ON THE GO
EJ Antoni, Chief Economist at the Heritage Foundation, criticizes the Federal Reserve’s stance on inflation, explores the affordability crisis and other ‘ways to make money’.
The Fed chief also agreed with Anchor Maria Bartiromo that widespread relief is needed across the U.S. real estate market and encouraged his colleagues at the central bank to “plan policy with an eye toward the future.”
“We need relief home loan interest rate“Some people argue that financial conditions are very accommodative because of the stock market, but what really matters in transmitting financial conditions to the economy is housing,” Millan said. And financial conditions in the mortgage and housing market remain extremely tight. We believe that if we lower interest rates, they will go down. ”
FOX Business’ Eric Revell contributed to this report.
