Fed Official Highlights Risks of Tight Monetary Policy Amid Optimistic Inflation Outlook

According to PANews, Federal Reserve Governor Milan has expressed concerns about the current state of monetary policy, noting that the neutral interest rate has decreased, leading to a more restrictive policy environment. Milan emphasized the potential risks if monetary policy is not adjusted accordingly. Despite these concerns, Milan remains more optimistic about the inflation outlook compared to many others. The tightening of monetary policy poses significant risks, underscoring the need for careful consideration and potential adjustments to ensure economic stability.