(Finance) – “The momentum of the economy around 2025, the healthy labor market, a disinflation process that has been irregular and has slowed down and the current financial conditions push me to two conclusions. In the first place, I believe that monetary policy has the luxury of being patient while we evaluate the future path, and this It will probably mean keeping the rate stable for some time“. He said it Beth Hammackpresident of the Federal Reserve Bank of Cleveland, in a speech at Columbia University.
“We made good progress, but an inflation of 2 percent is not yet in sight – he added – A patient approach will give us time to monitor the trajectories of the labor and inflation market and how the economy in general is behaving in the current context of rates. I will carefully observe the changes in the perspectives deriving from potential government policies and, of course, I will be ready to respond appropriately.
According to Hammack, “As long as the labor market remain healthy, I will seek widely based evidence that inflation is returning sustainablely to 2 percent before further adapting politics. Although there are good reasons to expect that the inflation will gradually drop to 2 percent in the medium term, this is far from a certainty e Risks upside down for inflation prospects abound. In addition, given the long and variable delays of monetary policy, it may take time to see the impact of the rates of last year’s rates, and an acceleration of the activity could slow down or block the cancellation process “.
The second conclusion of the president of the Fed of Cleveland, which comes from the analysis of the constellation of current conditions, is that “politics does not seem significantly restrictive to me; or, in other words, We could already be close to a neutral context“.