In a Fox Business interview, Cleveland Fed President Beth Hammack signaled that she sees little urgency for rate cuts given the current strength of the US economy. Hammack said Fed is “pretty close to where the neutral rate is,” and noted that unless there’s “material weakening on the labor side,” she doesn’t see a compelling case for policy easing.
While leaving the door open to shifts based on incoming data, Hammack emphasized that Fed is meeting its employment mandate, but still falling short on inflation. “We’re not there yet on the inflation side of the mandate,” she said, adding that a restrictive stance should be maintained until clear progress is made.
