Fed: Market view on a cut between now and the end of January is reasonable – Hammack

Cleveland Federal Reserve Bank (Fed) President Beth Hammack said that while she believes it may be time for the Fed to begin slowing the pace of rate cuts, the Cleveland Fed chief did a nod to investors anticipating at least one more rate cut between now and the end of January. Hammack made her first major appearance in a policy speech Friday after taking over as Cleveland Fed president from Loretta Mester, who retired from the position in June 2024 after 10 years on the job.

Highlights

The market’s view of a cut between now and the end of January is reasonable.

I have an open mind about the December FOMC meeting, more data is coming.

The economic outlook requires a modestly restrictive monetary policy.

The Fed is at or near the time of slowing the pace of rate cuts.

Monetary policy is probably somewhat restrictive.

Slowing the pace of rate cuts allows the Fed time to probe the economy.

The data will drive what the Fed does with monetary policy.

I expect solid growth, low unemployment and a gradual decline in inflation.

The economy is strong, the labor market is healthy.

The Fed has to continue working to cool inflation.

The labor market has become better balanced.

It’s too early to say what impact the proposed rates would have.

US debt appears to be on an unsustainable growth path.

Setting monetary policy is independent of the national debt.

The US economy is strong and the labor market is quite healthy.

Consumers are really supporting the economy, household balance sheets are strong.

Housing inflation is going to take much longer to go down.

I am very focused on housing problems and the real estate sector.