MEXCFed’s Hammack Raises Inflation Concerns Amid Push For Interest Rate Cut
Highlights
- Hammack warns that inflation is still too high to justify a Fed rate cut.
- Fed rate cut unlikely in July as odds fall below 5%.
- Trump, Waller push for rate cut, but Cleveland Fed suggests caution on timing.
Federal Reserve Bank of Cleveland President Beth Hammack has said inflation is still too high to justify a Fed rate cut. Her remarks come amid push from US President Donald Trump for Powell and the FOMC to cut rates.
Clearer Inflation Progress Needed Before A Fed Rate Cut
In a FOX interview, Hammack emphasized the need to assess how new policies are impacting inflation before supporting any quantitative easing (QE). Her comments suggest resistance to a cut at the upcoming July 30 meeting.
While market participants are eager for lower rates, Hammack made it clear that inflation control remains the central bank’s top priority. She believes acting too soon with a Fed rate cut could reverse recent progress on price stability.
Hammack’s wait-and-see approach aligns with that of Fed Chair Jerome Powell, who is reportedly considering resignation. Powell has continued to reiterate that it is best to wait and understand the impacts that the Trump tariffs could have on inflation.
Economic growth remains steady, but policymakers are focused on sustained improvement in inflation data. Hammack’s message reflects the need for more convincing evidence before endorsing a rate cut.
Markets Price In Delay In A Cut As Odds Drop Below 5%
CME FedWatch data shows that the Fed is unlikely to cut interest rates at the July 30 FOMC meeting. There is a 4.7% chance that the FOMC will cut rates, while there is a 95.3% chance that interest rates will remain unchanged. Investors now see an interest rate cut as more likely in the later part of the year.
This comes despite Fed Governor Christopher Waller’s statement that raised the possibility of a July Fed rate cut. Waller stated that the Fed is too tight and should consider a rate cut this month.
Earlier, US President Donald Trump also called for an interest rate cut of at least 300 basis points. The president claimed that the Federal Reserve’s delay is costing the nation huge losses.
- SBF Team Says “FTX Was Never Bankrupt,” Creditors Receive 120% Repayment
- XRP ETF Coming This November 13 As Canary Capital Submits Updated S-1 By Removing Roadblocks
- Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch
- CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement
- Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days
- Cardano Price Risks 20% Crash Amid Death Cross and Falling ADA ETF Odds
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
- Pi Coin Price Targets $0.65 as ISO 20022 Membership Boosts Institutional Confidence
- Ethereum Price Flips BTC in Strategy Shift, Eyes $4500 Level
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
