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Fed’s Hammack Signals Prolonged High Rates, Markets Adjust Expectations
Fed’s Hammack Signals Prolonged High Rates, Markets Adjust Expectations
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BTCCSquare news:
Cleveland Fed President Beth Hammack has drawn a line in the sand: no rate cuts until spring 2025 at the earliest. Her skepticism about November's CPI data—suggesting real inflation may hover between 2.9-3.0% rather than the reported 2.7%—adds weight to the Fed's cautious stance. Markets have already priced in an 80% probability of unchanged rates at January's meeting.
The central bank's current 3.5-3.75% policy rate reflects three 2024 cuts totaling 75 basis points, a easing cycle now clearly paused. Hammack's impending 2026 FOMC voting membership looms large, positioning her as a key architect of future monetary policy.
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