Fed Official States: No Urgent Need for Rate Cuts This Year Amid Inflation Concerns

Fed Official: Interest Rates Expected to Stay Stable

Cleveland Fed President Haarmk stated on Tuesday that despite a cautiously optimistic outlook, the Fed has no urgent need to adjust interest rates this year. She noted that the current interest rate level is in a relatively balanced position, neither suppressing nor overly stimulating the economy.

Inflation Remains a Key Concern

Haarmk emphasized that inflation is still too high, and the decline in price pressures is crucial for further monetary policy adjustments. She pointed out that inflation could remain around 3% this year, a risk factor that requires continued close monitoring.

Patience Advised as Economic Data Is Evaluated

Regarding future interest rate policy, Haarmk said rather than making fine-tuned adjustments, a more prudent approach is to observe the effects of current policies and how the economy performs.

Job Market Shows Stability

On the employment front, Haarmk noted that hiring remains relatively stable, providing the Fed with more room to monitor developments. She believes the current interest rate level is sufficient to support stable economic performance.