Officials from Fed stress considerable economic uncertainties, inflation risks for 2025
Date
1/12/2025 3:30:34 AM
(MENAFN) Officials from the US Federal Reserve (Fed) have emphasized the considerable economic uncertainties and ongoing risks associated with inflation, which are driving their cautious approach to monetary policy. Michelle Bowman, a Fed board member, highlighted that the US Economy showed resilience at the close of 2024, with significant activity growth and a labor market approaching full employment. Despite this, Bowman pointed out that core inflation remains high, and she continues to see upward risks to inflation, which is influencing the Fed’s strategy moving forward.
Bowman also noted that the rate cut implemented last month marked the final adjustment in recalibrating the Fed’s monetary policy. Given the persistent risks posed by inflation, she stressed the importance of maintaining a cautious stance in future monetary decisions to safeguard economic stability.
Boston Fed President Susan Collins echoed similar views, stating that the economy is performing well overall. She mentioned that the Fed's monetary policy is well-positioned to remain steady, provided inflation does not accelerate. However, she emphasized the importance of a patient and comprehensive approach to policy, ensuring flexibility in response to changing economic conditions.
Philadelphia Fed President Patrick Harker remarked that while the Fed is currently reducing interest rates, the speed of any future adjustments will be contingent on the data that emerges. He acknowledged the uncertainty ahead and emphasized that the pace of decisions would depend on the economic landscape in the coming months.
MENAFN12012025000045015839ID1109080443
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.