Fed official says US economy doesn’t see immediate need for interest rate cuts

A member of the Federal Reserve Council said on Monday that the American economy is “in good health” and that there is currently no need to reduce interest rates prohibiting a deterioration in the labor market amid uncertainty about the impact of definitions on inflation.

Peth Hamak, head of the Federal Reserve in Cleveland, spoke exclusively with Edward Lawrence of Fox, and said she believes that the central bank is in a place that can wait for changes to interest rates while seeing how economic conditions develop.

“When I retract and think about where the economy is generally, I see a really healthy economy. You have a job market ranging from 4 % to 4.2 %, stable, healthy, around this maximum employment of our mandate,” Hamak said.

“I got inflation, making progress from the top of 7 % at the height of the epidemic to less than 3 %. But we were hanging in the same range less than 3 % for some time, and I think it is important to wait and see how all the new policies that were put up will affect the inflation.”

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Hamak said that the recent economic data indicates that one of the components of the double Federal Reserve to enhance stable prices near the long -term inflation 2 % and the maximum employment in a better place than the other, so the current level of interest rates is appropriate.

“I walk at every meeting with an open mind, waiting to know where the data will take us, where the conversation takes us, and what do we do. But in terms of sitting and what I see, what I see is that we are hitting with the side of our employment in the mandate, we are not yet on the side of inflation from inflation, and I think it is important for us to draw what it restricts it in the restricted policy.

Beth Hamak, head of the Federal Reserve at Cleveland, said she believes that the central bank is in a place where he could wait for changes to interest rates while seeing how economic conditions develop. (Photographer: Nathan Howard / Bloomberg / Getty Emociz)

The Flonde Flandan Reserve Chairman said that the Federal Reserve is “very close to the place where the neutral rate” and that “I see a flexible economy, and I see one working well, and I do not see a need to limit what we did not see weakening the materials on the work side.”

The effects of a tariff at Atlanta in the Federal Reserve can cause inflation for a long time

Hammack was asked whether the current level of interest rates at the Federal Reserve, which ranges between 4.25 % to 4.5 % this year, could be at risk of slowing the economy and said that the remaining inflation with a higher goal than the target made it important to maintain prices somewhat restricted.

She said: “The modest restricted position we have now is important because inflation still exceeds our goal. We were running around 2.7 %,” she said. “As I mentioned last year when we did these cuts in the fall, that was because we saw inflation drop from 7 % to less than 3 %. We are still in this postal code.”

“If you look at the basic inflation, it was 2.7 % when we started these price discounts in September. It is still true about 2.7 %. So we expected more progress in it, and we did not see anything, and this is what the restricted position aims to help,” Hamak said.

“The modest restricted position we have now is important because inflation still goes beyond our goal,” said Beth Hamak, head of the Federal Reserve at Cleveland. (Spence Platt / Getty Images / Getty Images)

“I do not think that we are particularly bound at the present time, and I think the economy is working well. If we see that the economy weakens, if we see the image of growth slowing, if we see that the image of the work is slowing down, then of course we will respond to that. We take both sides of our state seriously.”

The President of the Federal Reserve, Powell, confirms the concerns of the tariff granted for interest rate discounts so far this year

President Donald Trump’s tariff has created uncertainty for companies and consumers, especially with the timing and depth of prices in prices, which affected the Federal Reserve’s evaluation of the date of reducing interest rates.

Federal Reserve Chairman Jerome Powell previously noted that the uncertainty about the effects of customs tariffs has contributed to the central bank’s failure to use interest rates so far this year. Hamak repeated this feeling, saying that the central bank needs to wait and know how the definitions play through the economy because it establishes the next interest price step.

Federal Reserve Chairman Jerome Powell previously noted that the uncertainty about the effects of customs tariffs has contributed to the central bank’s failure to use interest rates so far this year. (Reuters/Amanda Andradi Rhodes/Photo/Reuters photos)

She said: “If you look at very specific things, if you look at the steel, which had a 25 % clean tariff that was placed in March, increased last month to 50 %, you can see that over three months to four months, the steel price increased by 23 %, 21 %, she said. “Thus you see in separate places where you have a very clear and specific tariff, you can see some of the effects you pass.”

Hamak said: “In some of these other places where you had this broader customs tariff, then they decreased, they may return again. It is not clear where they will end up.”

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“There is a lot of uncertainty and what we hear from companies is that they are still working through their stocks, and they have a lot that they bought before the definitions appeared, and they are still working on going out.”

The next monetary policy meeting is scheduled to be held in the Federal Reserve later this month on July 29-30.