Federal Reserve Bank of Cleveland President Beth Hammack noted during an interview with Axios that the evolving policies of the U.S. government continue to make it increasingly difficult for policymakers to manage the economy. If not addressed, Hammack sees a stagflation scenario, in which low growth is accompanied by high inflation, as increasing.

Key highlights

Extraordinary uncertainty is weighing on economic activity.

Upcoming policies could offset the effects of trade policy.

Hammack sees a stagflation outcome as a likely scenario.

I don't want to overreact to trade.

White House tax bill complicates forecasting. (alg)

Source: FXstreet