Next year's FOMC new voting member leads with a 'hawkish' stance: interest rates should be frozen until spring, inflation remains a major concern

CoinVoice has learned that Beth Hammack, the president of the Cleveland Fed, stated that after the Federal Reserve's consecutive interest rate cuts in the past three meetings, she sees no need for any adjustments to interest rates in the coming months.

Hammack opposes the recent rate cuts because her concerns about persistently high inflation outweigh worries about potential weaknesses in the labor market—exactly the latter that prompted officials to cut rates by a cumulative 0.75 percentage points over the past few months. Hammack is not a voting member of the Federal Open Market Committee (FOMC) this year, but will gain voting rights next year.

Hammack hinted that the Fed does not need to adjust its current benchmark interest rate, which is between 3.5% and 3.75%, at least until next spring. She said that by then, the Fed will be able to better assess whether recent inflation in commodity prices is fading as the effects of tariffs are more fully digested in the supply chain. (Jin Shi) [Original link]