Monetary Policy Steadiness Advocated by Fed's Hammack

In a recent address, Federal Reserve Bank of Cleveland President Beth Hammack emphasized the importance of maintaining a steady monetary policy. She highlighted the delicate balance needed between addressing elevated inflation and a slowing labor market.

Uncertainty from New US Administration Policies

Hammack pointed out the challenges in predicting future interest rate moves due to uncertainties from the new US administration's policies, especially in trade. "The tariffs introduced represent a significant shift in trade policy," she noted, adding that the full economic impact of these changes will take time to assess.

Looking Ahead

The central banker stressed the need for patience as the effects of recent and proposed policy changes become clearer, underscoring the complexity of current economic forecasting.