News on March 4: Federal Reserve Governor Mulan stated in the latest statement that a 1% interest rate cut this year is appropriate. However, as the global economic structure changes, monetary policy needs to adapt to new challenges.
Mulan pointed out that layoffs by technology company Block indicate potential future changes in the job market, but he believes this event is an isolated company phenomenon and not representative of the overall trend. However, he specifically mentioned that the widespread adoption and development of artificial intelligence technology will lead to large-scale employment transformations, and the Federal Reserve should respond to this change through significantly easing monetary policy to ensure the economy can transition smoothly.
Despite the growing severity of credit issues, Mulan believes there is no need to adjust monetary policy to address credit pressure at present. He emphasized that the Federal Reserve should focus more on how to promote employment transformation driven by artificial intelligence through appropriate monetary policy to achieve long-term economic stability and growth. Mulan suggested that the Federal Reserve should continue to cut interest rates at the March meeting. He emphasized that the outlook for the U.S. economy has not undergone significant changes due to the outbreak of the Iran conflict.
