Next year's new FOMC voting members take the lead in "hawkish" stance: interest rates should be frozen until spring, inflation remains a major concern

BlockBeats News, December 22, Cleveland Federal Reserve President Beth Hammack stated that after three consecutive rate cuts at the last three Federal Reserve meetings, she believes there is no need to adjust interest rates in the coming months.

Hammack opposes recent rate cuts because her concerns about persistently high inflation outweigh worries about potential labor market vulnerabilities—the latter being the reason officials cumulatively cut rates by 0.75 percentage points in recent months. Hammack is not a voting member of the Federal Open Market Committee (FOMC) this year, but she will gain voting rights next year.

Hammack suggested that the Federal Reserve does not need to adjust its benchmark interest rate, currently in the 3.5% to 3.75% range, at least until next spring. She indicated that by then, the Fed will be better able to assess whether recent goods price inflation is subsiding as the impact of tariffs is more fully absorbed in supply chains. (Golden Ten Data)