Curb partners with Lyft to integrate ride requests into taxi platform
Investing.com - The Federal Reserve could move to slash interest rates in June depending on the state of the U.S. economy, according to Cleveland Fed President Beth Hammack.
Speaking on CNBC, Hammack said that the Fed could move quickly in response to economic data in the coming months.
She added that Fed officials will react when the direction of the broader economy becomes clearer, although she stressed that the central bank needs to be patient as policymakers assess the fallout from U.S. President Donald Trump’s sweeping tariff agenda.
It is also possible that Trump’s recent threats to oust Fed Chair Jerome Powell -- which sparked worries over a potential encroachment by the White House on the independence of the Fed -- could affect broader data, Hammack said. Trump has criticized Powell for not moving fast enough to slash interest rates.
The rate-sensitive 2-year Treasury yield, which moves inversely to prices, fell in the wake of Hammack’s comments.
Earlier this week, Hammack told a meeting of the Money Marketeers of New York University that it was "not a good time to be preemptive" with monetary policy.
Hopes for a softening in Trump’s aggressive tariff stance have been bolstered after he suggested he was willing to de-escalate trade tensions with China. The U.S. has slapped at least 145% levies on the world’s second-largest economy, leading Beijing to roll out countertariffs of 125% on U.S. imports.
Speaking to reporters on Wednesday, Trump said he wants to secure a "fair deal" with China over trade, although he did not lay out any specifics around possible negotiations with Beijing. Treasury Secretary Scott Bessent also said the sky-high tariffs were unsustainable.
Bolstering sentiment as well were Trump’s assurances that he had "no intention" of firing Powell.
However, traders noted that the White House’s tariff retreats will not fully eliminate massive trade headwinds facing the U.S. economy, analysts at Vital Knowledge said.
Stocks have fluctuated throughout the week, with a steep decline on Monday followed by two consecutive days of strong gains, as investors pay close attention to often erratic policy moves by the White House.