Recently, interesting disagreements have emerged within the Federal Reserve. Governor Milan issued a significant signal on Tuesday — current monetary policy is clearly too tight, dragging down economic growth, and by 2026, it may require cumulative rate cuts of over 100 basis points.

In an interview, he was frank: "Policy is obviously not at a neutral level; it is weighing on the economy. This year, the rate cut magnitude will likely need to far exceed 100 basis points." This stance is quite aggressive.

But it was like a loud slap — on the same day, Richmond Fed President Barkin said that interest rates are already in the neutral zone, and Minneapolis Fed President Kashkari also indicated that rates may already be very close to neutral. Although the Fed did cut rates three times last month, the hints of future actions remain quite open.

On the data front, the federal benchmark rate is now stuck at 3.5%-3.75%, while policymakers' median estimate of the neutral rate is 3%. Barkin pointed out that the Fed is actually walking a tightrope — balancing preventing inflation from becoming entrenched while not harming the labor market.

Milan has been serving as a Fed governor since September last year and has been advocating for more aggressive rate cuts over the past year. However, his term is ending this month, making his recent comments quite intriguing. Regardless, these signals are closely watched by the crypto market.