Fed Chair Powell, Cleveland Fed President Hammack Stress Caution on Rate Adjustments

Federal Reserve Chair Jerome Powell reiterated a cautious approach to interest rate adjustments during his recent testimony, citing a strong U.S. economy and moderate inflation as key factors. He emphasized that the Fed is not in a rush to change rates, allowing time to assess the impact of potential economic policies from the Trump administration. Similarly, Cleveland Fed President Beth Hammack supported the decision to maintain steady rates, highlighting ongoing inflation concerns and the uncertainties surrounding new government policies, including tariffs. Hammack noted that while progress has been made, achieving the target inflation rate of 2% remains a challenge. Both officials acknowledged that the current economic landscape allows for a careful evaluation of future monetary policy moves. Market expectations indicate a high likelihood that the Fed will keep rates unchanged in the upcoming meeting.