Fed's Hammack: Policy could be on hold for quite some time as Fed seeks clarity
|Federal Reserve (Fed) Bank of Cleveland President Beth Hammack said on Tuesday that the rate policy could remain on hold for quite some time as the Fed seeks clarity, per Reuters.
Key takeaways
"I don't see any imminent case to cut interest rates."
"Fed has time to make next decision on monetary policy."
"Would rather be slow and right than fast and wrong with monetary policy."
"Possible tariffs may have one-time hit on inflation, but that’s hard to say right now."
"Supported Fed’s decision to hold rates steady at June meeting."
"Fed policy is modestly restrictive."
"US economy has solid momentum, job market solid so far."
"Still some ways to go to get inflation to 2% target."
"Tariffs have added uncertainty to outlook."
Market reaction
The US Dollar Index struggles to rebound following these comments and was last seen losing 0.25% on the day at 98.10.
These comments received a neutral score of 5.6 from FXStreet Fed Speech Tracker. As a result, FXStreet Fed Sentiment Index inched higher to 106.1 from 105.8.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.