{"id":19843,"date":"2025-08-24T09:11:26","date_gmt":"2025-08-24T09:11:26","guid":{"rendered":"https:\/\/finderica.com\/?p=19843"},"modified":"2025-08-24T09:11:26","modified_gmt":"2025-08-24T09:11:26","slug":"cleveland-feds-hammack-casts-doubt-on-interest-rate-cuts-amid-inflation-worries","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=19843","title":{"rendered":"Cleveland Fed’s Hammack casts doubt on interest rate cuts amid inflation worries"},"content":{"rendered":"
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Cleveland Federal Reserve President Beth Hammack said Friday she would be hesitant about lowering interest rates as long as inflation remains a threat.<\/p>\n

In a CNBC interview, the policymaker did not share the market’s enthusiasm for a cut, sparked after Chair Jerome Powell’s keynote speech earlier in the morning stating that current conditions “may warrant” policy easing.<\/p>\n

“I heard that the chair is open-minded about what the right stance of policy is going to be and what the right decision is going to be in September,” Hammack said. “We’ve been above our [inflation] target for four years, and we need to get that under control. So to me, we need to maintain a modestly restrictive stance of policy to get inflation back to target.”<\/p>\n

Hammack acknowledged that her idea of the “neutral” interest rate that neither boosts nor restricts activity is higher than most other Fed officials. The former Goldman Sachs executive is not a voter this year on the rate-setting Federal Open Market Committee but will be in 2026.<\/p>\n

“So I don’t really think we have that far to go, which is why I want to make sure we’re maintaining that restrictive stance of policy to get inflation back to target,” she said. “I don’t want to move us to a place where we’re being accommodative, because I worry that if we’re accommodative, we could reinvigorate the inflationary pressures.”<\/p>\n

The Fed has held its benchmark funds rate in a range between 4.25%-4.5% since December 2024. Following Powell’s speech, futures traders priced in a nearly 90% chance that the FOMC would cut in September, according to the CME Group’s FedWatch<\/a> gauge.<\/p>\n

In a separate CNBC interview Thursday, Kansas City Fed President Jeffrey Schmid also expressed skepticism about cutting. Schmid is an FOMC voter this year but won’t be again until 2028.<\/p>\n<\/div>\n

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Cleveland Federal Reserve President Beth Hammack said Friday she would be hesitant about lowering interest rates as long as inflation remains a threat. In a CNBC interview, the policymaker did not share the market’s enthusiasm for a cut, sparked after Chair Jerome Powell’s keynote speech earlier in the morning stating that current conditions “may warrant”<\/p>\n","protected":false},"author":1,"featured_media":19844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[7886,7885,139,1886,418,5872,731,395,138,2942],"class_list":{"0":"post-19843","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-casts","9":"tag-cleveland","10":"tag-cuts","11":"tag-doubt","12":"tag-feds","13":"tag-hammack","14":"tag-inflation","15":"tag-interest","16":"tag-rate","17":"tag-worries"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19843"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19843\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/19844"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}