I think it's important that we wait and see how all the new policies that have been presented will affect inflation, she says in an interview with Fox Business News, reports news agency Bloomberg.
Trump has several times – with characteristic clear language – demanded that the Fed lower the interest rate, called Fed Chairman Jerome Powell slow and claimed that the country does not have any inflation.
Claims independence
In an interview with ABC News on Sunday, the White House economic adviser Kevin Hassett said that the government is "looking closer at" whether it has a mandate to fire Powell before his term expires in May next year.
But the Fed has persistently held on to the fact that the real economic statistics and the goal of 2 percent inflation should guide, not political interference.
"See no need"
Now, Beth Hammack points out that US companies are trying to get a grip on how Trump's tariffs will affect price increases.
At its meeting on July 29-30, the Fed's monetary policy committee (FOMC) is expected to keep the key interest rate in the range of 4.25-4.50 percent – and according to Hammack, that would be the right way to go.
I see an economy that is resilient. I see an (economy) that works really well, and I see no need to actually lower unless we see a significant weakening in the labor market.
