The president of the Bank of the Federal Reserve (FED) of New York, John Williams, said during an appearance at the Caribbean macroeconomic biennial conference, in Nassau, that the Fed task of forecasting economic results is becoming increasingly difficult, specifically under the weight of the Trump administration administration threats.
Key aspects
The trajectory of rates currently predicted by the Fed seems reasonable.
The downward economic risks and the upward inflationary risks are both very high.
The key issue for monetary policy is to manage risks and uncertainties.
The Central Bank of the USA is not in a hurry to make the next monetary policy decision. It has become more difficult to forecast the panorama at this time.
It is essential to keep inflation expectations contained.
Inflation expectations data at the University of Michigan are an atypical case.
It comforts me the stability of long -term inflation expectations.
I can’t say what will be the clear impact of tariffs on inflation.
The Fed has obtained more clarity on Trump’s political agenda.
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.
