The president of the Federal Reserve Bank (Fed) of Richmond, Thomas Barkin, appeared in the news on Thursday, warning that incoming economic uncertainty at the hands of the unequal commercial policy of the Trump administration will force the Fed to adopt a waiting approach and see more than what most of the investors expect.
Key aspects
The Fed expects uncertainty to be clarified before acting.
Changes in federal policy create short -term instability.
The fall of the feeling driven by uncertainty could silence demand.
A moderately restrictive policy position is a good place to be.
It is difficult to imagine that the labor market breaks towards hiring.
As for tariffs, given the recent high inflation, there could be more impact on prices, but it is not yet known where the fees will be established or how companies and consumers of the affected countries will respond.
The direction of changes in federal policy can be known, but the extension and how they are reflected in the economy remains uncertain.
Current levels of uncertainty could reduce consumers and companies.
The bankers want certainty of the regulatory agency.
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.
