Federal Reserve Bank of Cleveland Chairman Beth Hamac Federal Reserve Bank of Canus City participates in the 2025 Jackson Hole Economic Policy Seminar, “Labor Markets in Transitions: Pediatrics, Productivity and Macroeconomic Policy”, Jackson Hole, Vyoming, USA, America, 2025.
Jim Urquhart | Roots
The Cleveland Federal Reserve President Beth Hamac on Monday said that the US Central Bank faces challenges as it attempts to fight stubborn inflation or protect jobs.
Hamac told CNBC, “In favor of inflation right now, I am worried about where we are from the perspective of inflation,” Hamac told CNBC that “Squalk box europe,
He said, “We are remembering our mandate in favor of inflation, our aim of 2%, over 4 and I continue to see that we have that in the headline, in the core, and in particular, where I am concerned about it, both are under pressure in inflation, I see it in services,” he said.
Asked whether it is a mistake to cut interest rates for the Federal Reserve, describing it as “a challenging time for monetary policy”, saying that the US central bank was facing pressure on both sides of its mandate.
Shortly after his comments, there are expectations for Wall Street’s sharp monetary ease after a strong-to-additional economic figures.
Fed approved Widely anticipated rate deduction Earlier this month, its benchmark reduced the overnight loan rate to a quarter percentage points to 4.00%-4.25%, and two more indicated that the end of the year was on the way before the end of the year.
However, a strong batch of economic data has inspired investors Dial their expectations back To reduce the rate rapidly.
The investor’s focus now turns into a September nonform payroll report, scheduled for Friday, although its release can be interrupted Possible government shutdown,
Hamac stated that the American labor market looks “appropriate health” and broadly in balance, while inflation remains above the target of Fed, saying that it does not expect prices to fall by 2% by the end of 2027 or 2028.
“So, again, for me, when I balance those two sides of my mandate, I think we really need to maintain a restrictive stance of policy so that we can get inflation back to our goal,” Hamac said.
Hamac, an executive of a former Goldman Sachs, is not a voter on the rate-setting Federal Open Market Committee this year.
Two -sided risk
American core was inflation A little changed In August, Friday published data. The Department of Commerce said at the end of last week that the individual consumption expenditure price index recorded a growth of 0.3% for the month, with an annual headline inflation rate of 2.7%.
Except for food and energy, more closely followed core PCE price level was 2.9% on an annual basis after an increase of 0.2% for the month.
Hamac is the first suggested As long as inflation remains a threat, it will hesitate to reduce interest rates.
Actually, recently, Federal Reserve Chair Zerome poly Wags A difficult way forward on interest rates.
Powell said on September 23 during a speech to Business Leaders on Providence, Road Island, “Nearly the risks for inflation are inverted and risk to risk-a challenging situation.”
“Two-way risks means no risk-free way,” he said.
– Jeff Cax of CNBC contributed to this report.
