Highlights
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.
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.
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.
Polymarket founder Shayne Coplan has sparked speculation about a potential native token launch following a…
The FOMC minutes have signaled a dovish shift from the Fed officials, who look likely…
North Dakota is set to become the second U.S. state to issue a stablecoin, named…
Ethena Labs reported that it has partnered with Jupiter Exchange to develop JupUSD. This is…
BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has become the most bought exchange-traded fund…
MetaMask has officially introduced perpetuals trading on its platform, powered by Hyperliquid. Meanwhile, the crypto…