Fed officials' policy leans toward "neutral", but expects policy clarity after Trump takes office

officials from the Federal Reserve are taking a "neutral" policy stance, citing strong economic performance and waiting for Donald Trump's policies to become clearer. Michelle W. Bowman, a member of the Federal Reserve Board, said in a speech in California on January 9th, "I expect that in the coming months we should be able to clarify the policies of the incoming government as well as the continuation of inflation pressure in 2024. Bowman's speech, as well as a speech by Jeff Schmid, president of the Kansas City Fed on the same day, both indicate that because the US economy is performing strongly by the end of 2024 and inflation is above the "2% target", it may not be necessary to further cut interest rates. "Schmid said, "I believe we are approaching a point where the economy does not need to be restricted or supported, and policy should be neutral."