Fed’s Hammack Signals Patience as Inflation Remains High

Federal Reserve Bank of Cleveland President Beth Hammack said the Fed is in a strong position to monitor the economy, noting that inflation remains too high. She indicated that interest rates could stay on hold for some time, with the current target rate close to neutral.


Hammack highlighted that Fed policy, supportive financial conditions, and fiscal measures are helping growth, but warned that inflation could remain around 3 percent this year.
Markets reacted with the U.S. Dollar Index at 96.76, showing moderate weakness, while gold traded near $5,018.97 per troy ounce amid dollar fluctuations and lower Treasury yields. The Dow Jones Industrial Average reached 50,365 points, reflecting steady investor confidence in economic stability.


Hammack’s comments underscore the Fed’s cautious approach, balancing inflation concerns with a desire to avoid sudden policy shifts. Investors remain focused on upcoming U.S. economic data, which could drive further movements in the dollar, gold, and equities.