Boston Federal Reserve Bank (Fed), Susan Collinsjoined the growing group of people responsible for the Fed who are raising warning signs about the continuous uncertainty caused by the hesitant position of the Trump administration in terms of tariff policy, which will continue to weigh on the ability of the Fed to adjust the policy rates.
Key points
Renovated price pressures could delay feature cuts.
The Fed could find space to reduce rates this year.
Tariffs could push the underlying inflation well above 3% this year.
Tariffs will increase inflation and slow down growth levels.
Fed policy decisions are difficult, affected by compensation.
We must keep the inflation expectations stable.
Monetary policy needs to be agile in an uncertain environment.
I hope that inflationary pressures decrease in the long term.
High uncertainty is cloudying economic perspectives.
The rates policy is well positioned, maintaining stability for now seems the best.
The strictest financial conditions can restrict the activity.
The Fed policy remains positioned to reduce inflationary pressures.
I see inflationary risks and risks of growth down.
The financial markets are performing well, they continue to be liquid.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
