No Case for Rate Cut, Says Cleveland Fed President
Cleveland Federal Reserve President Beth Hammack stated that the current economic data does not justify lowering interest rates, signaling continued support for the Fed’s hawkish stance. Speaking at the Kansas City Fed’s Economic Symposium in Jackson Hole, Hammack emphasized that inflation remains too high and has been trending upward over the past year.
“If the meeting was tomorrow, I would not see a case for reducing interest rates,” Hammack told Yahoo News.
Hammack highlighted that recent tariffs are still working their way through the economy, and their full inflationary impact may not be visible until 2026. This aligns with Fed Chair Jerome Powell’s strategy to keep policy tight, despite political pressure from President Trump for lower rates.
Market Reaction: Bitcoin Falls
Markets quickly adjusted expectations for a September rate cut following Hammack’s comments. Bitcoin (BTC) dropped to a session low, trading below $113,000, as traders priced in the likelihood of prolonged higher interest rates.
Powell Holds Hawkish Support
The remarks show that Powell retains strong backing within the Fed, despite recent dissent from two policymakers advocating for a more dovish approach.
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