Federal Reserve Bank of Cleveland President Beth Hammack said on Wednesday that she sees "a strong case" to maintain monetary policy steady "in order to balance the risks coming from further elevated inflation and a slowing labor market."
In a speech at the Columbus Metropolitan Club, Hammack argued that the uncertainty stemming from the changes in the new US administration's policy, particularly trade policy, makes it more difficult to predict the Fed's future interest rate policy moves.
"The tariffs that have been put in place constitute a substantive change in trade policy. It will take some time for the overall economic effects of these recently enacted and other proposed changes to government policies to become clearer," the central baker noted.
