Fed's Hammack says interest rates could be on hold 'for quite some time'

Core Viewpoint - The Federal Reserve Bank of Cleveland President Beth Hammack indicated that there is no urgency for the U.S. central bank to change interest rates this year, maintaining a "cautiously optimistic" outlook for economic activity [1]. Economic Outlook - Hammack believes the current position allows the Fed to keep the funds rate steady and observe economic developments without making hasty adjustments [2]. - The economic outlook is positive, with expectations of growth supported by easier financial conditions, recent interest rate reductions, and fiscal support [5]. Interest Rate Policy - The Fed's current interest rate target range is between 3.5% and 3.75%, a decision supported by Hammack at the end of January [2]. - The Fed had previously reduced its target by 75 basis points last year to support a softening job market while managing inflation, which has consistently exceeded the 2% target [3]. Inflation Concerns - Despite a positive economic outlook, Hammack noted that inflation remains "too high" and emphasized the importance of easing price pressures, which could remain around 3% this year [5]. Employment Trends - Current hiring trends indicate stability, characterized by a "low-hire, low-fire" environment where companies are not significantly increasing or decreasing their workforce [6].