Fed’s Hammack: Tariff impacts remain uncertain

Beth Hammack of the Federal Reserve Bank of Cleveland depicted a fundamentally robust economy, despite inflation persistently surpassing the Fed’s target.

Key Quotes

• I see an economy that’s really healthy.
• Inflation has made progress toward the Fed’s target but is still too high.
• Goes into every Fed meeting with an open mind.
• We are not there yet on inflation; it is important to stay restrictive on monetary policy.
• Fed officials are having a great debate over the economy.
• Many business plans are on pause amid uncertainty.
• Uncertainty has been weighing on investment.
• We don’t know if the economy will boom later this year.
• We don’t know what the tariff impact will be.
• We are pretty close to where the neutral rate is.
• Doesn’t see an imminent need to cut rates.
• If fed sees the economy weaken, of course fed will respond.