#DanielNadem

Cleveland Fed President Beth Hammack recently cautioned that traders shouldn't anticipate quick interest rate cuts. She feels U.S. inflation hasn't cooled enough to justify a rushed policy shift. Despite a 0.75% total cut recently, Hammack believes rates should stay steady for several months. She noted that the official 2.7% inflation rate might actually be closer to 3% due to data distortions. With rising production costs and upcoming tariffs, she expects many companies to raise prices in 2025. Consequently, the Fed is waiting for sustainable disinflation. This cautious outlook has investors bracing for a much slower path toward cheaper borrowing.