Recently, a senior official who previously served at the Fed made bold suggestions regarding future monetary policy, sparking widespread attention in the financial community. In an interview, this official expressed his views on the current interest rate levels, stating that the rates are slightly high and recommending significant cuts in the coming years.

Specifically, he proposed to start implementing interest rate cuts in September of this year and to continue this policy in the following months. More notably, he also suggested that by 2026, the cumulative rate cut should reach 100 basis points. This proposal is undoubtedly quite aggressive, reflecting his unique insights into the economic outlook.

It is worth mentioning that this official is currently competing for the position of Fed Chair. He revealed that he has communicated with senior officials at the Treasury Department regarding this matter and plans to arrange more in-depth discussions after the upcoming holiday.

Regarding the direction of monetary policy in 2024, the official stated that it will be determined based on the performance of economic data. This attitude reflects the Fed's consistent data-dependent principle, showing the cautious approach of decision-makers when formulating policies.

At the same time, the official also emphasized the importance of maintaining the U.S. dollar's position as the world's primary reserve currency. This viewpoint highlights that U.S. monetary policy is not only related to the domestic economy but is also closely linked to global financial stability.

Overall, this statement provides us with a window into the internal thinking of the Fed and gives us a glimpse into the possible future direction of U.S. monetary policy. However, the ultimate policy direction still needs to await more economic data support and consensus from the Fed's decision-making body.