Cleveland Fed President Beth Hammack signaled a firmer stance against further rate cuts. In a MarketWatch interview, she expressed her opposition to additional easing unless the economic outlook deteriorates, warning that markets may be misinterpreting the Fed’s tolerance for inflation.
Hammack said that some investors now believe the Fed may quietly accept inflation “just below 3%,” calling that notion a threat to the central bank’s credibility. While she continues to monitor the labor market, Hammack said she sees little risk of a downturn.
Looking ahead, she expects the economy to strengthen into 2026, with businesses likely to increase investment amid easier credit conditions and supportive equity markets. “At this point, I don’t think there is more that monetary policy can do,” she said.
