Federal Reserve hawkish officials warn: Worsening employment could trigger a crisis in 2027

YieldWhisperer · 2025-12-19T23:00:11+00:00

Federal Reserve official Milan calls for a quick rate cut, believing that easing inflation and a cooling labor market require a shift to accommodative policies. He advocates for a 50 basis point cut but faces strong opposition, reflecting disagreements over policy pace. He warns that failure to respond promptly could pose risks to the financial system. Milan's term will end soon, and his remarks directly reflect internal Fed concerns about the economic outlook.

YieldWhisperer

2025-12-19 23:00:11

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【Crypto World】Federal Reserve official Milan continues to pressure management, calling for an early start to interest rate cuts. His core logic is straightforward: inflation has eased somewhat, and the labor market is cooling significantly. This combination suggests that monetary policy needs to shift to easing promptly to stabilize the labor market.

Milan is one of the few aggressive rate-cut advocates within the Federal Reserve. At last week’s meeting, he directly voted against the majority, advocating for a one-time 50 basis point cut, while most colleagues chose a more conservative 25 basis points. This difference reflects considerable disagreement within the Fed about the pace of policy adjustments.

More notably, he warned that if employment continues to weaken at the current rate and policy does not respond in time, the financial system could face severe tests by 2027. This is not alarmist but based on historical patterns and current data.

Interestingly, Milan’s term at the Federal Reserve is set to end on January 31, which may be one reason for his relatively candid remarks now. In any case, his views represent a concern within the Fed about the economic outlook, and such signals could have a tangible impact on asset price fluctuations.

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ColdWalletGuardian

· 2025-12-22 22:16

Here comes the trap of interest rate cuts again, this time by another 50bp, truly a do-or-die situation.

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ser_ngmi

· 2025-12-22 12:06

Cutting rates by 50bp? Is this guy trying to save the market or just doing a bail-in, a final crazy performance before leaving office?

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DegenRecoveryGroup

· 2025-12-19 23:37

Bro, are you hinting at a crash...

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GateUser-00be86fc

· 2025-12-19 23:30

This guy in Milan is really anxious. The 50 basis point rate cut was immediately suppressed, and it seems like there is quite a fierce internal rift within the Federal Reserve.

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JustHereForMemes

· 2025-12-19 23:27

The crisis of 2027? Bro, you should be panicking now. Even a 50 basis point rate cut was met with resistance. The Federal Reserve is really in chaos internally.

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HashBandit

· 2025-12-19 23:19

yo fed's moving slow again... back in my mining days we'd adjust hashrate way faster than these guys adjust rates lol. 50bps cut sounds reasonable ngl but when has the fed ever listened to the one guy actually worried? network congestion of the economy if you ask me, scalability trilemma playing out in real time fr

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WagmiAnon

· 2025-12-19 23:14

Cutting interest rates by 50bp? Dream on. In a hawkish environment, this guy is just talking nonsense. The Fed is so divided internally, which clearly indicates there are real problems.

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