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Cleveland Fed’s Hammack Urges Holding Line on Rates Over Persistent Inflation

Her stance underscores uncertainty over the December decision given limited official data during the government shutdown.

Federal Reserve Bank of Cleveland President Beth Hammack attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole Economic Policy Symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy", in Jackson Hole, Wyoming, U.S., August 21, 2025. REUTERS/Jim Urquhart
Federal Reserve Bank of Cleveland President Beth Hammack addresses the Economic Club of New York in New York City, U.S., November 6, 2025. REUTERS/Brendan McDermid

Overview

  • Hammack said policy looks barely restrictive and should lean against price pressures rather than move to additional easing.
  • She opposed the late‑October quarter‑point cut that set the federal funds rate at 3.75%–4.00% and favors keeping settings mildly restrictive.
  • Raising rates is not her base case, though she said a stickier inflation path or a stronger‑than‑assessed labor market could warrant hikes.
  • She projected inflation near 3% by year‑end with pressures lingering into 2026, and expects only a modest uptick in unemployment.
  • She described financial conditions as quite accommodative as investors weigh a possible December cut, with Chair Jerome Powell saying such a move is not assured and key data constrained by the shutdown.