Federal Reserve (Fed) Bank of Cleveland President Beth Hammack noted during an interview with Axios that still-brewing US government policies continue to make it increasingly difficult for policymakers to manage the economy. Left unchecked, Hammack sees rising odds of a stagflation scenario, where low growth is coupled with high inflation.
Tremendous uncertainty weighs on economic activity.
Policies to come could offset trade policy effect.
Hammack sees stagflationary outcome as a likely scenario.
I don't want to overreact to trade.
White House tax bill complicates forecast.