Fed Hammack Urges Steady Rates ‘For Quite Some Time’

FomoAnxiety · 2026-03-04T15:32:51+00:00

Beth Hammack, President of the Federal Reserve Bank of Cleveland, supports maintaining interest rates to reduce inflation to 2%, viewing current rates as neutral. She warns the U.S.-Iran war may impact energy prices and consumer demand. The Fed’s next meeting is on March 18.

FomoAnxiety

2026-03-04 15:32:51

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Federal Reserve Bank of Cleveland President Beth Hammack has aligned with a growing group of central bank officials who support keeping rates unchanged in order to bring inflation down to the 2% level. In addition, she believes that the current rate is “neutral” and is consistent with the Fed’s dual mandate of maximizing employment and holding prices down.

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“We’re in a good spot from a policy perspective,” Hammack said in an interview with the New York Times. “I think we could be on hold for quite some time.”

Hammack Weighs Inflation Risks from U.S.-Iran War

Hammack added that the U.S.-Iran war could push energy prices higher and fuel inflation while weighing on consumer demand, though it remains too early to assess the full economic impact.

The Fed will meet for its next interest rate decision on March 18, where it is widely expected to hold rates steady, according to the CME FedWatch tool. By year-end, the most likely outcome is for the central bank to cut rates by 50 bps.

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