{"id":167318,"date":"2025-08-22T20:05:15","date_gmt":"2025-08-22T20:05:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/167318\/"},"modified":"2025-08-22T20:05:15","modified_gmt":"2025-08-22T20:05:15","slug":"cleveland-feds-hammack-casts-doubt-on-interest-rate-cuts-amid-inflation-worries","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/167318\/","title":{"rendered":"Cleveland Fed’s Hammack casts doubt on interest rate cuts amid inflation worries"},"content":{"rendered":"

\"Inflation<\/p>\n

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<\/a> 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

Don\u2019t miss these insights from CNBC PRO<\/p>\n","protected":false},"excerpt":{"rendered":"Cleveland Federal Reserve President Beth Hammack said Friday she would be hesitant about lowering interest rates as long…\n","protected":false},"author":3,"featured_media":167319,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[104,78,133,64,81,11764,79,266,267,135,67,132,68],"class_list":{"0":"post-167318","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-breaking-news","9":"tag-breaking-news-economy","10":"tag-breaking-news-markets","11":"tag-business","12":"tag-business-news","13":"tag-central-banking","14":"tag-economy","15":"tag-inflation","16":"tag-interest-rates","17":"tag-markets","18":"tag-united-states","19":"tag-unitedstates","20":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115074218322338707","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/167318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=167318"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/167318\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/167319"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=167318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=167318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=167318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}