Cleveland Fed Chairman Hamack ruled out the possibility of a rate cut in May, but said the Fed could take action as early as June if there is clear evidence of the economy's direction.

“We will keep an eye on the data and every time I meet, I think with an open mind, whether to continue to be patient or take action now,” Hamak said on Thursday.If we have clear and convincing data in June, then I think that if the right direction of action is known by then, the committee will take action. ”

Hamak is discussing the current challenging policy environment on the prospects of interest rate cuts. In the eyes of many economists, Trump's trade agenda is likely to increase unemployment and curb growth while pushing up already high inflation. Some forecasters even believe that a recession may occur.

U.S. 2-year Treasury yields fell and then rebounded after Hamaq said it could cut interest rates in June.

This prospect makes it difficult for the Fed to make a clear decision because the Fed has a statutory responsibility (i.e., a “dual mission”) to maintain inflation stability and achieve full employment in the job market.

Several policy makers, including Hamak, believe that it is a wait-and-see time to see how Trump's policy changes gradually impact the economy, although financial markets are currently digesting the possibility of a series of interest rate cuts, with the current range of federal funds target interest rates between 4.25% and 4.5%.

The next meeting of officials is scheduled forMay 6-7Hold.

When asked whether he would see the Fed relaxing policy at a FOMC meeting on May 6-7, Hamak seemed to be strongly opposed.

Hamak said,It is "too early" to change interest rate policies next month.

"I think we need to be patient. I think it's a time when we want to make sure we're heading in the right direction," she said. "I'd rather take some time" to see how the economy is doing.

Hamak also said that she currently does not have a benchmark forecast for the economy, but is thinking about the prospect from a scenario perspective.

Fed officials have previously hinted that they intend to keep interest rates stable until Trump's immigration, trade and regulatory policies have a clearer direction. Several policymakers pointed out that there is a high level of uncertainty about how these policies will be implemented and how other countries and businesses will respond.

Hamak reiterated that officials need to take time to make sure they are in the right direction. She also said the Fed has proven that they can act quickly once the direction of action is clear.

Hamak warns about trade tariffsUncertainty is putting pressure on businesses, including in terms of expenditure and employment plans. She said the Fed has been watching the market and concluded that the market is operating normally, despite “significant volatility” in recent weeks.. She insisted that the Fed does not guide the market, but guides the economy, which remains "very resilient."