Federal Reserve (Fed) Bank of Cleveland President Beth Hammack noted on Thursday that interest rates are likely on hold for the time being as inflation data starts to pose a growing problem for central policymakers.
Key highlights
Monetary policy has the luxury of being patient right now.
I seek evidence that inflation is moving to 2% before supporting more cuts.
The Fed are likely to hold rates steady for some time.
There are good reasons to expect inflation to come down further.
Fed rate policy may be close to neutral right now.
Broad financial conditions are accommodative right now.
Fed policy does not appear meaningfully restrictive.
Equity market valuations are high right now.
Easing inflation has been uneven and has slowed.
Further easing in inflation are far from certain, upside risks are abound.
Over the longer run, the economy can adapt to higher interest rates.
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