Federal Reserve Hamak: Given the inflation situation, it is not obvious whether the Federal Reserve should cut interest rates again

Hamack said it was not obvious whether the Fed should cut interest rates again given inflation; the economy would pick up next year; he did not expect a sharp decline in the labour market; and inflation would be one percentage point above target (2 per cent) this year. He also said that unemployment is expected to rise slightly this year and then fall again; the Fed is under pressure from its dual goals of employment and inflation; monetary policy is at best barely restrictive; inflation is expected to remain high until 2026; the job market may be more fragile than the data suggest; financial conditions are quite loose; and inflation will take two to three years to recover to 2 per cent.