The new Federal Reserve Governor Stephen Milan recently delivered a policy speech that has attracted widespread attention, but his views do not seem to have garnered universal agreement among Wall Street economists.

Milan presented a controversial point during his speech: he believes that the previous government's policies in multiple areas have significantly lowered the interest rates necessary to prevent inflation. Based on this judgment, Milan argues that the current Federal Reserve's benchmark interest rate is clearly too high and criticizes policymakers for failing to notice this fundamental change in a timely manner.

However, Wall Street's reaction has been quite lukewarm. Michael Feroli, an economist at JPMorgan, candidly pointed out in a report to clients that some of the arguments from Milan are questionable, while others lack sufficient evidence and persuasiveness.

Milan particularly emphasized the factors behind the decline in neutral interest rates and warned that if the Federal Reserve does not swiftly cut rates, it could pose a threat to the economy. At the recent Federal Reserve meeting, he advocated for a more aggressive rate cut, suggesting a reduction of 50 basis points instead of the 25 basis points ultimately implemented.

In a speech at the Economic Club of New York, Milan called for a rapid return to neutral policy levels through extraordinary rate cuts. He also hinted that if necessary to maintain his position, he might continue to vote against in future monetary policy meetings.

Milan's remarks quickly made him a dissenter within the Federal Reserve. It is worth noting that Milan previously served as a senior economic advisor at the White House, and whether his views are influenced by his previous experience has also sparked some discussion.

Despite the widespread attention garnered by Milan's views, Wall Street economists seem to disagree with his arguments. This divergence reflects the complexity of the current economic situation and highlights the challenges faced in formulating monetary policy. How the Federal Reserve will balance differing viewpoints in the future, as well as whether Milan's claims will influence future policy directions, are all worth our continued attention.