US Federal Reserve officials are adopting a “neutral” policy stance, pointing to strong economic performance and awaiting more clarity on Donald Trump’s policies.
United States Federal Reserve officials are leaning toward a neutral policy stance as they await clearer direction from Donald Trump once his presidential term begins.
“I expect that the coming months should bring clarity on the incoming administration’s policies and the carry-over of inflationary pressures from 2024,” Fed Governor Michelle W. Bowman said in a Jan. 9 speech in California.
The speech from Bowman, along with a speech from Kansas City Federal Reserve President Jeff Schmid on the same day, both suggested that further rate cuts may not be necessary due to the US economy’s strong performance toward the end of 2024 and inflation staying “above its 2% target.”
