Federal Reserve Bank of Cleveland President Beth Hammack:
- Sentiment data about the economy concerning
- If the Fed faces challenges on inflation and unemployment it will be a difficult choice
- Will take more time to see how business decisions are influenced by trade policy
- Right now the best action for the Fed is to sit on its hands… “”The best action we can take is to sit on our hands and really carefully go through the data, engage with our communities, hear what they are thinking about, hear about the choices that they are making,””
- Inflation expectations have stayed reasonably well-anchored, if that changes it might be a signal the Fed needs to act
Federal Reserve Bank of San Francisco President Mary Daly is speaking at the same event:
- The net effect of Trump administration trade, immigration, other polices remains unknown
Federal Reserve Bank of Atlanta President Raphael Bostic is moderating the discussion:
- Do not expect a recession, but unclear when households and firms will feel comfortable making long run spending decisions
- On the most high profile questions, including trade policy, clarity seems to be moving further into the future
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More ‘wait and see’ from Fed officials.
Hammack
This article was written by Eamonn Sheridan at www.forexlive.com.