Fed Governor Milan: Policy Stance Too Restrictive as Inflation Outlook Improves

Federal Reserve Governor Milan said on Dec. 15 that the Fed's current policy stance is excessively restrictive and the inflation outlook appears favorable, BlockBeats reports. He expects housing inflation to ease as rent increases retreat from COVID-19 peaks toward normal levels, and argued that cooling in the labor market makes a renewed pickup in services inflation less likely. Milan noted that labor-market deterioration can be rapid and hard to reverse due to monetary policy lags of several quarters, reiterating that easing policy sooner would move the stance closer to neutral.