Federal Reserve President Stephen Milan speaks to CNBC on the floor of the New York Stock Exchange (NYSE) in New York City, USA, on November 10, 2025.
Brendan McDiarmid | Reuters
Federal Reserve President Stephen Milan continued his campaign to lower interest rates on Monday, telling CNBC that policymakers should ignore the current spike in energy prices unless there are signs of long-term consequences.
“If we see a wage-price spiral, if we see evidence that inflation expectations are starting to rise, I would be concerned about that,” he said in an interview on “Squawk on the Streets.” “There is no evidence of that so far, and monetary policy rates can be moved as much as they like today and tomorrow, but they will not affect inflation in the coming months.”
Citing market-based indicators, Milan said inflation expectations remained firmly stable despite price shocks that saw oil prices soar to more than $100 a barrel and gasoline prices rise by more than $1 a gallon.
He added that monetary policy operates with a lag and does not respond to short-term market fluctuations.
Milan has voiced his opposition at every meeting he has attended since September 2025. He told CNBC that he continues to think, “Maybe if we do it in stages over a year, it might be a little bit easier.”
The target range for the federal funds rate is currently 3.5% to 3.75%. Market prices suggest no move in either direction by the end of the year.
Millan’s term has expired, but he will continue to serve as former Federal Reserve President Kevin Warsh’s nomination is pending in the Senate Banking Committee. If approved, Warsh would take over as chairman from Jerome Powell when his term expires in May.
