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Cleveland Federal Reserve President Beth Hammack has voiced firm opposition to additional interest rate cuts, warning that persistent inflation remains a significant challenge to the U.S. economy. Speaking at an economic event in New York, Hammack said she remains concerned that monetary policy is not doing enough to bring inflation back to the Fed’s 2% target.
“I remain concerned about high inflation and believe policy should be leaning against it,” she said, noting that the current stance of policy is “barely restrictive, if at all.” Her comments come just a week after the Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point to the 3.75%–4.00% range — a move she opposed.
Hammack emphasized that inflation pressures are still running above desired levels, and she believes the central bank should avoid further cuts until there is clearer evidence of progress. While she acknowledged signs of cooling in the labor market, she pointed out that unemployment remains low and that a major downturn is not likely. However, she expects job growth to remain subdued and the unemployment rate to rise modestly in the coming months.
According to Hammack, financial markets are currently helping to sustain economic activity, supported by stronger equity prices and easier credit conditions — factors she believes could lift growth next year. She projected inflation to end the year near 3% and remain elevated through 2026 before gradually falling back toward the Fed’s target.
Her comments come as investors continue to speculate about the possibility of another rate cut at the Fed’s December meeting, though Fed Chair Jerome Powell has said no decision has been made. Hammack’s remarks highlight an ongoing debate within the central bank between those urging caution over inflation and those focused on supporting a cooling job market.
