President, Federal Reserve Bank of Cleveland
“We need more progress on inflation before any rate cuts.”
Inflation Still a Concern
– Inflation has slowed from its peak
– But remains above the Fed’s 2% target
– Hammack:
"Not quite there yet."
No Rush to Cut Rates
– Hammack signals
a wait-and-see approach
– Interest rates likely to stay high for now
– Fed wants to avoid reigniting inflation
When Will Rates Fall?
Markets hope for a cut this year
“We must see sustained improvement”
Behind the Fed’s Thinking
Price stability is top priority
Cutting too early =
risky
"Patience is key"
No rate cuts yet
More inflation cooling needed
The Fed remains
data-dependent