Core Viewpoint - Federal Reserve Bank of Cleveland President Beth Hammack believes there is no need to change US interest rates for the coming months, emphasizing concerns over elevated inflation rather than labor-market fragility [1][5]. Interest Rate Outlook - Hammack stated that the current benchmark interest rate, which is between 3.5% and 3.75%, should remain unchanged at least until spring [2][7]. - She indicated that the Federal Reserve will be able to better evaluate inflation trends by spring, particularly in relation to the impact of President Trump's tariffs on goods prices [3]. Inflation Concerns - Hammack expressed that the consumer price index of 2.7% for November likely underreported the actual 12-month price growth due to data distortions [3]. - She prefers a tighter monetary policy stance to exert more pressure on inflation, suggesting that the current policy rate is at a neutral level but could be slightly more restrictive [6]. Future Policy Decisions - Hammack will be a voting member of the Federal Open Market Committee next year, which will influence key decisions regarding monetary policy and interest rates [6].
Fed's Hammack signals holding rates steady for months: report
New York Post·2025-12-21 22:29