Federal Reserve Officials Maintain Neutral Stance Amid Strong Economic Performance

According to Odaily, Federal Reserve officials are adopting a neutral policy stance, citing strong economic performance while awaiting clearer policies from Donald Trump's administration. On January 9, Federal Reserve Governor Michelle W. Bowman stated in California that she expects the upcoming government's policies and the continuation of inflation pressures in 2024 to become clearer in the coming months. Bowman's remarks, along with those of Kansas City Fed President Jeff Schmid on the same day, suggest that due to the robust performance of the U.S. economy by the end of 2024 and inflation rates remaining above the 2% target, further interest rate cuts may not be necessary. Schmid expressed confidence that the economy is nearing a point where it neither requires restriction nor support, indicating that policy should be neutral.