The Fed is expected to remain on the sidelines until the end of spring! Boston Tic: The economic situation in the United States is still unclear.

Atlanta Fed President Raphael Bostic stated that the impact of President Trump's policies and other factors on the economy may take several months to become clear. This indicates that Fed policymakers may keep rates steady at least until the end of spring. Bostic reiterated that Trump's policy changes could affect the economy in different ways, increasing uncertainty. He said, "The question is, how does this all resolve? If we can figure it out by late spring or early summer, I would be surprised." He added that the direction of the economy is "largely uncertain." The Fed will hold three policy meetings in late spring and early summer, on May 6-7, June 17-18, and July 29-30. Fed policymakers have recently hinted that they expect to keep rates unchanged for a period of time, while waiting for more evidence that inflation is approaching the 2% level. Investors currently expect the Fed to keep rates unchanged at the policy meeting on March 18-19. However, at the same time, based on pricing of futures contracts, the market anticipates three rate cuts later this year. Bostic said, "Just this week, we've seen sharp fluctuations in policy direction. You have to be patient, not get too far ahead." He had previously stated last week that the Fed should keep rates at a restrictive level until it has full control over price stability - one of the Fed's dual mandates.