Fed's Hammack: I prefer to wait than move in the wrong direction with rates

Joshua Gibson FXStreet

Federal Reserve (Fed) Bank of Cleveland President Beth Hammack joined the ever-growing chorus of Fed policymakers taking a hard cautious stance to interest rate forecasts, cautioning that uncertainty wrapped up in US trade policy will continue to make it difficult for the Fed to engage in market-smoothing operations.

Key highlights

The desk stands ready to engage in money markets if needed.

We may move much more quickly when the Fed does adjust rates.

Monetary policy is modestly restrictive right now.

It is unclear that removing Statutory Liquidity Ratio (SLR) constraint adds to risk capacity.

I think we've been seeing markets work themselves out.

I prefer to wait than move in the wrong direction with rates.

Markets are strained, but functioning.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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