Beth Hammack, president of the Bank of the Federal Reserve of Cleveland, said the Central Bank should exercise patience in its monetary policy amid high uncertainty and added that it would not rule out making adjustments for June if the data justifies an action.
Key points
- Uncertainty is really weighing on companies and their planning.
- We still do not know what uncertainty and commercial policy will do to the economy.
- It does not have a base case at this time, it is analyzing scenarios for the economy.
- There are many different scenarios ahead for the economy.
- Fed needs to be patient, it is too early to change rates.
- Good things are being seen in hard data, the softest data is a problem.
- The Fed will act quickly if necessary.
- When clear where the economy is going, the Fed will act.
- Look at the markets for their impact on the real economy.
- In recent weeks, markets have been clearly volatile but functional.
- The US economy is very resistant.
- With the economy, there are many different paths ahead.
- Enter each FOMC meeting with an open mind.
- The Fed could act in June if the data is clear about the state of the economy.
- The lowest shares, bonds and dollars must be monitored.
- The Fed will focus on the data while formulating policies.
- It is possible that Trump’s opinion about the president of the Fed can affect the data.
- Independent central banks offer better results, markets recognize this.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
