Fed officials stress economic uncertainty, inflation risks in policy outlook
Date
1/11/2025 3:18:40 AM
(MENAFN) Officials from the US Federal Reserve emphasized ongoing economic uncertainties and persistent inflation risks, citing these factors as the primary reasons for maintaining a cautious approach to future monetary policy decisions.
Fed board member Michelle Bowman noted that while the US Economy showed resilience through the end of last year, driven by solid growth and a labor market nearing full employment, core inflation remains a concern. "However, core inflation remains elevated, and I continue to see upside risks to inflation," she remarked on Thursday.
Bowman also pointed out that the recent rate cut marked the final phase of the Fed’s efforts to adjust its monetary policy, stressing that the persistent risks of inflation demand a careful approach going forward.
Similarly, Boston Fed President Susan Collins, speaking at NAIOP Massachusetts, emphasized that the overall economy is performing well. She suggested that monetary policy is positioned to either remain stable if inflation holds steady or ease if necessary, underscoring the importance of a patient, balanced, and flexible policy strategy.
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