🇺🇸FED #SIGNALS RATE PAUSE: HAMMACK WARNS INFLATION RISKS STILL TOO HIGH🚨

Federal Reserve official Beth Hammack said there is no urgency to cut rates further after a cumulative 0.75% reduction across three meetings.

Hammack opposed the recent cuts, arguing inflation risks outweigh labor-market weakness.

She warned November CPI at 2.7% likely understates inflation, estimating true inflation closer to 2.9–3.0% due to government shutdown distortions.

Hammack believes the neutral interest rate is higher than markets assume, suggesting policy may already be mildly stimulative.

She supports holding rates at 3.5%–3.75% until at least spring to assess tariff-driven price pressures.

Inflation has stayed near 3% for ~18 months, reinforcing her cautious stance.

Hammack becomes a voting FOMC member in 2026, increasing her future policy influence.

SRC: Federal Reserve remarks / public statements