Federal Reserve's Hamak: Given the current economic outlook, the Fed's "clearly accommodative stance" is no longer appropriate.

CoinFeed reported on May 1st that, according to Jinshi, Federal Reserve Chairman Hamak stated that given the current economic outlook, the Fed's "clearly accommodative stance" is no longer appropriate, and this widespread view is the "cornerstone" of the Fed's decision-making process. Furthermore, Fed Chairman Kashkari stated that even in a "favorable scenario" of the Strait of Hormuz reopening soon, inflation will remain high, requiring interest rates to remain unchanged for an extended period. Sufficiently large price shocks could jeopardize inflation expectations, potentially requiring the Fed to raise interest rates in a series to maintain its credibility in upholding its 2% inflation target. A prolonged closure of the Strait could jeopardize inflation expectations due to price shocks, necessitating a "strong policy response."