Fed’s Hammack: We can be very patient in considering future rate cuts

• Monetary policy is only moderately restrictive
• There has been amazing progress on inflation but it remains a problem
• Restrictive policy is still needed for some period of time to control inflation
• We also still have a rate-of-change problem that needs to be addressed
• Thought that 75 bps rate cut for 2024 was appropriate back in September
• Tariffs have the potential to further complicate inflation outlook
• Full transcript (may be gated)

As a reminder, Hammack was the sole dissenter to the rate cut in December and she won’t be holding a voting position on the FOMC this year. Her comments fit with her profile, so there isn’t anything too surprising here.

This article was written by Justin Low at www.forexlive.com.