Markets are quickly recalibrating previously lofty odds of an imminent rate cut as the jets touch down in Jackson Hole for the Kansas City Fed’s Economic Symposium.
The current data does not make the case for a September ease, said Cleveland Fed President Beth Hammack, speaking with Yahoo News in Wyoming.
“We have inflation that’s too high and has been trending upwards over the past year,” she said. “If the meeting was tomorrow, I would not see a case for reducing interest rates.”
She further argued that inflation numbers are only beginning to show the impact of tariffs and that the full effect wouldn’t be seen until next year.
Hammack’s comments are notable, showing Fed Chair Jerome Powell continues to have plenty of support in his hawkish stance despite two dissident dovish votes at the last central bank policy meeting and President Trump’s continuing campaign for lower rates.
Her remarks also come after a series of potential Powell…
