- Policy patience will allow the Fed to gather more data on the economy
- Fed in position to take time and assess
- Beings slow and reacting correctly is better than going too fast
- If job market holds and inflation rises, a more restrictive path is needed
- IF growth falters and inflation eases, Fed could cut even more quickly
- Will take time to gauge impact of tariffs on the economy
- More work to do to get inflation to 2%
This is no surprise as Hammack has been a hawk since Day 1. What’s less clear is the path Powell will take. Waller shifted dovishly this week but virtually every other Fed official has taken a stance closer to Hammack here.
We won’t have to wait long to find out as Powell speaks at 1:30 pm ET.
This article was written by Adam Button at www.forexlive.com.