Cleveland Fed's Hammack Signals No More Rate Cuts in 2026:

Cleveland Fed President Beth Hammack, who is shortly going to become a voting member of the FOMC in 2026, indicated that interest rates are going to remain stagnant for an extended period. Hammock struck a note of caution regarding last month's tame CPI reading, which she attributed to distortions in the data gathered during the government shutdown.

However, there is a divergence in opinion on monetary policies in 2025, between Hammack and other members of the Fed, such as Chris Waller. For risk-based assets such as stocks, commodities, and bitcoin, an easing of Fed policies is expected, yet the latter has failed to experience such gains in 2025.

Her aggressive approach and views on the neutral rate may have implications for the Fed's future actions and market sentiment in 2026.

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