MNI BRIEF: Hammack Prefers A Wait-And-See Fed Approach

Cleveland Fed President Beth Hamamck on Monday said it is important that the Federal Reserve maintains a restrictive posture as it remains in a wait-and-see mode to see how Trump administration policies impact the economy. 

"I think it's important that we wait and see how all of the new policies that have been put forward are going to impact inflation," Hammack said in an interview with Fox Business. She said the central bank is "hitting on our employment side of the mandate," but "we're not there yet on the inflation side of the mandate." (See: MNI INTERVIEW: Fed's Daly: Time To Think About Adjusting Rates) 

"I do think we're pretty close to where the neutral rate is and so I see an economy that's resilient. I see one that's working really well, and I don't see a need to really reduce [interest rates] unless we see material weakening on the labor side," the Cleveland Fed president said. "The modestly restrictive stance that we have right now is important because inflation is still running above our target."