Federal Reserve officials are taking a "neutral" policy stance, pointing to strong economic performance and waiting for more clarity on Donald Trump's policies. "I expect the coming months to provide clarity on the incoming administration's policies and the continuation of inflationary pressures in 2024," Fed Governor Michelle W. Bowman said in a speech in California on Jan. 9. Bowman's speech, as well as remarks by Kansas City Fed President Jeff Schmid on the same day, suggested that further rate cuts may not be necessary as the U.S. economy is strong through the end of 2024 and inflation remains "above the 2% target." "I believe we are close to the point where the economy needs neither restraint nor support, and policy should be neutral," Schmid said.