Federal Reserve officials signalled ongoing debate over the U.S. central bank’s policy stance, even as they defended the interest-rate decision taken earlier this week. Fed official Hammack told Bloomberg Television he is “confident” the Federal Open Market Committee made the right call, while acknowledging that the current environment is “really tricky” and that it is natural for policymakers to disagree. Hammack said the recent inflation “miss has been bigger and lasted longer,” and that price pressures are still influencing economic decisions. He described the current setting of monetary policy as “a little bit restrictive, not far from neutral,” adding that officials must weigh both the inflation and employment sides of the Fed’s dual mandate. Governor Michelle Bowman echoed the theme of internal diversity of views, saying she recognises and appreciates that other FOMC members may see the economic outlook differently. The remarks underline a widening range of perspectives inside the central bank as it navigates persistent inflation and the risk of slowing growth.
FED'S HAMMACK: THIS IS REALLY TRICKY TIME FOR MONETARY POLICY, MAKES SENSE THAT THERE CAN BE DISAGREEMENT, I HAVE ENORMOUS RESPECT FOR CHAIR POWELL https://t.co/wkL238xvPv
Federal Reserve's Hammack Says "It Makes Sense That There Can Be Disagreement"
Fed's Hammack: This is really tricky time for monetary policy.