Fed's Hammack Sees Two-Sided Risks to Interest Rates

• The February jobs report was a disappointment, indicating more Americans are not working.
• The overall economy is healthy with a positive outlook, and the labor market is stabilizing, partly due to past Fed accommodation.
• Inflation remains above the 2% target for five years, with little progress in the last two years, leading to two-sided risks for interest rates.
• Monetary policy is currently around neutral, and the Fed could maintain this stance for 'quite some time'.
• Businesses are no longer hesitant to invest and hire, but face challenges in finding skilled labor and managing persistent pricing pressures from energy and insurance costs.

Cleveland Fed President Beth Hammack discusses the US economy, noting a disappointing jobs report but an overall healthy and brightening outlook. She highlights two-sided risks to interest rates, suggesting monetary policy is currently around neutral and could remain on hold. Inflation remains a persistent concern, while businesses are optimistic but face labor shortages and pricing pressures.