Cleveland Fed's Beth Hammack Calls for Steady Interest Rates Amid Inflation Concerns

Federal Reserve Bank of Cleveland President Beth Hammack opposes further U.S. interest rate cuts due to inflation worries. Despite the central bank's recent reductions, Hammack advises maintaining current rates until spring to assess inflation trends. She advocates a slightly restrictive monetary stance to counter persistent inflation.

Federal Reserve Bank of Cleveland President Beth Hammack has expressed a firm stance against further U.S. interest rate cuts, citing concerns over elevated inflation levels as a primary reason for her opposition.

According to a report from the Wall Street Journal, Hammack remarked that there's no immediate need to adjust interest rates until spring. Her reservations stem from worries about ongoing inflation, despite recent rates being reduced by 75 basis points over the past few months.

Hammack emphasized that the current rate range of 3.5% to 3.75% should remain in place for some time, allowing clearer evidence on inflation and employment trends to emerge. She advocated for a slightly more restrictive monetary policy to exert pressure on inflation and highlighted her role as a voting member of the FOMC next year.

(With inputs from agencies.)