Investing.com -- The President and CEO of the Federal Reserve Bank of Cleveland, Beth Hammack, told Reuters her preference for clear and convincing evidence before making decisions on interest rates. She indicated that there might not be much data available by the Federal Reserve’s meeting in June.
Hammack expressed her desire to be preemptive and action-oriented when possible. However, she admitted that this is challenging due to the uncertainty surrounding tariff and other policies. She emphasized the importance of moving slowly and in the right direction, rather than rushing and potentially making a mistake.
The Fed’s Hammack also mentioned that businesses are considering potential layoff plans in case demand decreases, but they have not yet acted on these plans. Additionally, some businesses are contemplating price increases but are wary of the potential impact on demand.
Hammack noted the resilience of the US economy, but stated that it is too early to predict its future direction. She stressed the need to consider the net effect of all policies from the Trump Administration.
In conclusion, Hammack believes it is reasonable to adopt a wait-and-see approach given the current circumstances.
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