Fed's Hammack Advocates for Current Restrictive Monetary Policy Amid Economic Uncertainty and Impact of Tariffs

Federal Reserve official Hammack has articulated a strong case for maintaining current monetary policy, emphasizing the need for patience to gather more economic data amid heightened uncertainty. Hammack stated that the Fed is positioned to take time to assess the economic landscape, which is clouded by government policies that may increase the risks of higher inflation and slower growth. He mentioned that the current restrictive monetary policy is essential for lowering inflation and that it is not appropriate to react to every fluctuation in the markets. Hammack also highlighted that if the job market remains robust and inflation continues to rise, a more restrictive approach may be necessary in the future. He noted that it will take time to evaluate the impact of tariffs on the economy, as recent data points indicate mixed signals regarding growth and consumer sentiment.