Federal Reserve Chairman Powell: It is reasonable to keep interest rates unchanged at this stage due to uncertainties in the economic outlook.

Cleveland Federal Reserve Bank President Beth Hamrick stated that, due to economic uncertainty, maintaining the current interest rates unchanged is a reasonable move at this stage, but Federal Reserve officials may need to take action soon to curb persistently high inflation. Compared to the robust labor market, Hamrick is more concerned about inflation: U.S. inflation has been above the Fed's 2% policy target for five consecutive years. In a prepared statement at an event in Cleveland on Tuesday, Hamrick said, "At present, given the economic uncertainties, it makes sense to maintain interest rates unchanged. But if the recent trends in economic data continue, the Fed may soon need to use monetary policy to address the increasing risks of rising inflation." Since the escalation of inflation pressures due to the U.S.-Iran conflict, more and more Fed policymakers have stated that the Fed should signal the possibility of raising interest rates. At the April FOMC meeting, Hamrick and two other officials voted against the post-meeting statement hinting at a potential resumption of rate cuts by the Fed.