"Policy needs to remain restrictive until ... I see that we are really continuing to make progress on inflation," she told a community banking conference hosted by the American Bankers Association in Phoenix, Arizona. With the economy and labor market solid, "we want to be, in my judgment, careful ... before we make the next adjustment" to ensure there is enough downward pressure on inflation, she said. It is expected to keep it there for another couple of meetings as policymakers watch the economic data and begin to assess how the Trump administration's tariff, immigration, tax and other policies may affect inflation and unemployment.
