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Cleveland Fed President Advocates for Steady Interest Rates Amid Inflation Concerns

Cleveland Fed President Advocates for Steady Interest Rates Amid Inflation Concerns

Published:
2025-12-21 14:15:02
11
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BTCCSquare news:

Cleveland Fed President Beth emphasized a cautious approach to monetary policy, signaling no immediate need for interest rate adjustments in the coming months. Her focus remains squarely on persistent inflation rather than potential labor market softening. The November inflation report, while superficially improved, may understate true price pressures due to measurement distortions from the government shutdown.

The neutral rate—the theoretical equilibrium point for monetary policy—appears higher than consensus estimates, suggesting the current benchmark rate of 3.5%-3.75% might still be accommodative. This outlook implies rate stability until at least spring 2023, when clearer signals on goods-price trends emerge.

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