Overview
- Hammack said policy is "barely restrictive, if at all" and signaled comfort with keeping the federal funds rate near the current 3.75%–4% range.
- She argued that easier credit conditions could prolong elevated inflation, encourage risky lending, and distort market pricing in ways that could deepen a future downturn.
- Hammack said the financial system looks sound overall but flagged elevated leverage at hedge funds and insurers and pointed to private credit and stablecoins as areas to monitor.
- Recent Fed minutes highlighted a divided committee and a government shutdown has limited official data, and futures pricing now leans toward holding rates in December.
- Other officials echoed caution, with Chicago Fed’s Austan Goolsbee uneasy about another rapid cut and Philadelphia Fed’s Anna Paulson approaching the next decision carefully.