Finance

Fed Official Urges Patience on Tariff Impact Assessment

Published

17 hours ago

April 24, 2025

Fed Official Urges Patience on Tariff Impact Assessment

Introduction to the Current Economic Situation

Cleveland Fed President Beth Hammack emphasized the need for policymakers to be patient rather than preemptive in assessing the impact of tariffs on inflation and growth. In her first broadcast interview since taking the reins at the central bank district in August 2024, Hammack highlighted the high level of uncertainty and refrained from committing to a specific course of action regarding interest rate policy.

The Need for Patience

Hammack stated, "I think we need to be patient. I think this is a time when we want to make sure we’re moving in the right direction, rather than moving too quickly in the wrong direction." She emphasized the importance of thoroughly examining the data before making any decisions. "So I would rather take our time to make sure we’re looking at the data, the hard data… which are actually really good," she added.

The Impact of Tariffs on the Economy

Hammack’s remarks come at a sensitive time for the Federal Reserve, which is tasked with assessing the impact of President Donald Trump’s tariffs on both inflation and employment. Several central bank officials, including Chair Jerome Powell, have expressed concerns that the duties pose threats to both sides of the Fed’s "dual mandate," posing another challenge in calibrating monetary policy. Hammack also voiced concerns over how the Fed might balance these priorities, noting that "it could be that we have the two sides of our mandate in conflict, which is the most challenging for monetary policy."

Balancing Inflation and Employment

Hammack explained that if the tariffs lead to higher inflation and lower employment, it would create a complicated situation for the Fed. "If it’s higher inflation, lower employment, that’s where things get really complicated," she said. The Fed is expected to stand pat on interest rates when it meets on May 6-7 and then resume cutting rates in June, with a total of three or four reductions predicted by the end of the year.

Market Expectations and Uncertainty

Hammack does not vote this year on the rate-setting Federal Open Market Committee but will vote in 2026. She stated that if the committee has convincing data by June, they will consider making a move. However, uncertainty over tariff policy and how the Fed might react has contributed to substantial market volatility in recent months, with stocks struggling, Treasury yields rising, and the U.S. dollar falling.

The Role of the Fed

As a former Goldman Sachs executive, Hammack emphasized that the Fed’s job is not to focus on market movements but rather on how they affect broader economic conditions. "Our job is not to focus on what the markets are doing. Our job is to focus on how that’s going to impact households and businesses, and what that’s going to mean in the real economy," she said. Hammack noted that the "hard" economic data, such as unemployment and inflation, is still relatively good, while "soft" data, such as surveys, shows elevated levels of concern.

The Impact on Businesses

Hammack explained that the uncertainty is weighing heavily on businesses, making it difficult for them to plan and make investment decisions. "What we’re hearing right now is that the uncertainty is really weighing on businesses," she said. "It’s creating issues for them in terms of planning, in terms of thinking about where they’re going to go, and so some of them have put pauses on whether they’re going to make bigger investments, whether they’re going to invest in new facilities, new capital plans, and then they’re thinking about their hiring plans."

Conclusion

In conclusion, Cleveland Fed President Beth Hammack emphasized the need for patience and careful consideration in assessing the impact of tariffs on the economy. The Fed is faced with the challenge of balancing inflation and employment, and uncertainty over tariff policy has contributed to market volatility. As the Fed navigates these complex issues, it is essential to focus on the real economy and the impact of monetary policy on households and businesses. With the current level of uncertainty, it is crucial to wait for convincing data before making any decisions, and the Fed will likely take a cautious approach in the coming months.

Finance

Finance Minister, Bank Governor Off to US for World Bank-IMF Meetings

Published

4 hours ago

April 25, 2025

Peter James

Finance Minister, Bank Governor Off to US for World Bank-IMF Meetings

Introduction to the 2025 World Bank/IMF Spring Meetings

The Minister of Finance and Planning, Hon. Dr. Marial Dongrin, and the Bank of South Sudan Governor, John Ohisa Damian, have embarked on a significant journey to the United States. They are attending the 2025 World Bank/IMF Spring Meetings, a prestigious gathering of global financial stakeholders.

The Purpose of the Meetings

Held annually in Washington DC, these meetings bring together central bankers, ministers of finance and development, and private sector executives to discuss the state of the global economy and pressing international concerns. The forum provides a unique platform for stakeholders to engage in discussions on factors such as growth outlook, financial stability, and poverty reduction.

Current Global Economic Challenges

This year’s meetings, which commenced on April 21, take place at a critical moment for multilateral cooperation. The global economy is facing numerous challenges, including shrinking aid budgets, rising global debt, and trade uncertainty. These issues have significant implications for economies worldwide, making the 2025 World Bank/IMF Spring Meetings a timely and crucial event.

South Sudan’s Delegation

Dr. Dongrin is accompanied by the Governor of Bank of South Sudan, Hon. Johnny Ohisa, and representatives from their respective institutions. The delegation aims to engage in discussions with Bretton Woods institutions and U.S. government representatives to explore opportunities for enhancing economic cooperation between South Sudan and the United States.

Engaging with the U.S. Government

Despite a diplomatic row between the two countries, the U.S. government has granted special visas to the South Sudanese delegation. This exception allows them to participate in the meetings and engage with U.S. government officials. Dr. Dongrin expressed his intentions to discuss modalities for advancing economic cooperation between the two countries during his visit.

Overcoming Diplomatic Challenges

The diplomatic row between South Sudan and the U.S. is related to a deportation incident, which led to a blanket visa suspension for South Sudanese passport holders. However, the U.S. government’s decision to grant special visas to the delegation indicates a willingness to maintain economic dialogue and cooperation.

Conclusion

The 2025 World Bank/IMF Spring Meetings provide a vital platform for global financial stakeholders to address pressing economic challenges. The participation of the South Sudanese delegation, led by Dr. Marial Dongrin, demonstrates the country’s commitment to engaging with the international community and exploring opportunities for economic cooperation. As the meetings conclude, it is essential for stakeholders to work together to address the complex economic challenges facing the world today.

Finance

Smallholder Farmers Groups Are Catalysts of Change

Published

1 day ago

April 24, 2025

Peter James

Smallholder Farmers Groups Are Catalysts of Change

Introduction to Rural Producer Organizations

The Country representative for the International Fund for Agricultural Development (IFAD), Caroline Mwongera, emphasized that rural producer organizations are not just structures but catalysts for change. They offer a platform for farmers, traders, rural entrepreneurs, women, and young people to pool their resources, share knowledge, and connect to markets.

The Importance of Unity

Mwongera explained that the African proverb "if you want to go fast, you go alone. But if you want to go far, you go together" reflects the organization’s belief in collaborative effort. By investing in producer organizations, they aim to bring people together to achieve common goals.

Launching the Rural Enterprises for Agricultural Development (READ) Project

The READ project was launched on Tuesday in Juba, with the goal of promoting rural development and addressing the challenges faced by rural communities. According to Mwongera, women are critical to South Sudan’s rural economy, yet they face barriers to land ownership, leadership, and financial access. The READ project aims to address these gaps by ensuring that 50% of rural producer organization members are women.

Empowering Youth

The project also focuses on empowering young people, who make up 70% of the rural producer organization membership. Mwongera stated that the youth stand a chance of being the future of rural enterprises, and the project aims to equip them with the skills, resources, and platforms they need to become agents of change and innovation in their communities.

Climate Resilience

Another key feature of the READ project is climate resilience. It promotes climate-smart technologies and practices that allow rural producer organizations to improve productivity, withstand climate shocks, and build more sustainable livelihoods. Mwongera described the project as a blend of social inclusion, youth empowerment, and climate action, making it a truly transformative project.

Government Support

The Director General for the Ministry of Finance and Planning, John Garang, emphasized the importance of projects like READ in addressing the development and humanitarian challenges in the country. He noted that agriculture projects, such as READ, can empower users by enhancing their agricultural skills through capacity development.

Project Details

The READ project will last for six years and aims to reach approximately 27,511 rural households or 162,315 household members through 780 rural producer organizations and 324 Rural Financial Institutions (RFIs). The project will be implemented in six counties across six states, with the possibility of expansion to additional states in the future.

Conclusion

In conclusion, the READ project has the potential to bring about significant positive change in rural South Sudan. By empowering women, youth, and rural communities, the project can help address the country’s development and humanitarian challenges. As Dr. Mohamed Abchir, Resident Representative for the United Nations Development Program (UNDP) South Sudan, noted, agriculture is not just about food, but encompasses livelihoods, gender equality, resilience, nutrition, literacy, and climate change, all of which are critical for driving growth and recovery. With the support of the government and partners, the READ project can make a meaningful contribution to the development of South Sudan.

Finance

Daily Newspaper Advertisement

Published

2 days ago

April 23, 2025

Peter James

Introduction to No. 1 Citizen Daily Newspaper Advertisement

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