Fed’s Hammack Pushes Back on Rate Cut Bets; Bitcoin Dips Below $113K
Cleveland Federal Reserve President Beth Hammack said there’s no justification for a rate cut at this time, citing persistent inflation and limited impact so far from trade-related price pressures.
“If the meeting were tomorrow, I would not support lowering rates,” Hammack said in an interview with Yahoo News from Jackson Hole, where the Kansas City Fed’s annual Economic Symposium is underway. “Inflation is still too high and has been trending upward.”
She added that the effects of recent tariffs have only just begun to filter into inflation data and may take until next year to be fully reflected.
Markets Reassess Fed Path
Hammack’s comments reinforce Fed Chair Jerome Powell’s hawkish stance and come despite political pressure from President Trump and internal disagreement among FOMC members. Two policymakers dissented at the last meeting in favor of cuts.
Her remarks follow a wave of public appearances from former Fed officials calling for more aggressive easing. On Thursday morning, former St. Louis Fed President Jim Bullard said the Fed should cut rates by a full percentage point.
Bitcoin Falls as Rate Cut Odds Retreat
Bitcoin has slumped nearly 10% from last week’s record above $124,000, dropping to around $112,800 as traders dial back expectations for a September cut.
According to CME FedWatch, the likelihood of a cut next month has dropped to 71%, down from nearly 100% just seven days ago.
All Eyes on Powell
With Hammack’s tone reinforcing a patient policy stance, attention now turns to Jerome Powell’s keynote address Friday. Markets expect the Fed Chair to maintain a cautious approach, emphasizing sticky inflation and the need for more data before any easing move.
