President of the Federal Reserve Bank in Dallas Lorie Logan 29 said May that the United States Central Bank might have to maintain a short -term interest, as waiting for data showing the impact of President Donald Trump’s politician, Reuters reported.
She said that the Fed rate could remain “where they are for some time” because the bank is waiting for the data to show whether a mixture of trade, tax and regulatory policies Donald Trump increases inflation or mines to employment.
At the beginning of this month, the Fed left its political rate in the range of 4.25-4.50 %.
What Fed’s Lorie Logan said
“For now, with a market for work that holds strong, inflation trends gradually back to the goal and risk to the goals (Fed) roughly balanced, I believe that currency policy is in a good place. It may take some time to balance the risks in one direction,” Logan said at WACO, Texas.
If the balance shifts, she added, “We will be well prepared to answer.”
Logan is only the latest of a number of politicians, including Fed chairman Jerome Powell to say it is too early to know whether Trump’s aggressive tariffs will only increase inflation only temporarily or persistent, or whether tariffs could reduce employment in some imports.
“Stimulative federal fiscal policy or regulation changes could also increase investment and consumer demand. On the other hand, economic uncertainty and volatility of the financial market could get consumers and businesses to withdraw, slow down the economy,” she added.
Jerome Powell resists Donald Trump’s rate demand
Jerome Powell assured US President Donald Trump at a meeting held at the White House on May 29, that the Fed “sets monetary policy, as required by law, to support maximum employment and stable prices, and these decisions will only be based on careful, objective and non -political analysis”.
Certainly came during their first personal meeting since Powell joined office in January. The meeting confirmed by the White House and the Fed emphasized the ongoing tensions over the interest rate policy.
During the Trump meeting, he reportedly told Powell that, according to Reuters, it does not reduce interest rates by “error”. The White House spokesman Karoline Leavitt said, “The President said he believed that the Fed chairman makes a mistake by not reducing interest rates, which puts us at the economic disadvantage for China and other countries.”
(With Reuters inputs)
(Tagstotranslate) Federal reserve system
