Fed’s Hammack Cautions Against Further Rate Cuts Amid Persistent Inflation
Cleveland Fed President Beth Hammack signaled reluctance toward additional monetary easing, citing inflation's stubborn hold above the central bank's 2% target. "Monetary policy appears barely restrictive—if at all," Hammack stated during an Economic Club of New York address, opposing the recent 25bps cut that brought rates to 3.75%-4.00%.
Financial markets still price a 70.9% probability of another December cut per CME FedWatch, buoyed by October's 153,074 job cuts—the highest for the month in two decades. Hammack anticipates unemployment to rise and inflation to stabilize at 3%, despite accommodative conditions.