Federal Reserve Cleveland Fed President Beth Hammack:
- There has to be a high bar for Fed to step in to aid markets
- Market should set where term premium stands
- Uncertainty is a big issue in economy, it’s causing businesses to pause
- Economic uncertainty prompting business caution
- We have not seen the need for Fed market intervention
- ‘Incredibly high bar’ exists for Fed to step in
- Recent market troubles was risk transfer, markets were functioning
- Natural to see investors shift positions during volatility
- Fed job is not to tell markets what the right price is
Bolding above is mine, focusing on the real economy for a moment. The haphazard announcements from Trump will weigh on business investment, activity, and employment. The data will increasingly begin to show this from April onwards.
Earlier:
This article was written by Eamonn Sheridan at www.forexlive.com.