Federal Reserve Governor Milan says regulatory easing may provide reasons for interest rate cuts

On January 14th, Federal Reserve Governor Milan stated that relaxing regulation may exert downward pressure on prices, providing reasons for the US central bank to cut interest rates. He predicts that by 2030, 30% of regulation may be lifted, which could reduce inflation by 0.5 percentage points annually. Milan believes that relaxing regulation is equivalent to positive supply and productivity shocks, which can help increase economic capacity and alleviate price pressures.