Fed Fed: need further clarity on inflation path before cutting rates

Richmond Fed President Balkin said the Fed needs further clarity on the path of inflation before it can cut interest rates. Balkin, who has a vote on monetary policy this year, said policy is well-positioned at the moment, adding that the Fed has the strength it needs to keep inflation in check. Asked if the Fed could cut rates once and keep them at that level, Balkin said it depended on economic data. If current conditions persist, now may not be the best time to provide guidance on the timeline for subsequent policy adjustments. "There are times when we want to provide forward guidance and have done so," he said, "and it doesn't seem to me like that time right now. It doesn't feel like the right time to issue forward guidance. Let's see where the data leads us."