Fed’s Hammack sees healthy economy but says inflation still too high

Published 14/07/2025, 13:48
Fed’s Hammack sees healthy economy but says inflation still too high

Investing.com -- Federal Reserve Bank of Cleveland President and CEO Beth M. Hammack described the U.S. economy as "really healthy" but emphasized that inflation remains above the central bank’s target.

In comments made to Fox Business on Monday, Hammack stated that while inflation has made progress toward the Fed’s target, it is "still too high," adding that it remains "important to stay restrictive on monetary policy."

Hammack indicated she approaches each Federal Open Market Committee meeting "with an open mind" and noted that Fed officials are engaged in "a great debate" over the economy’s direction.

The Cleveland Fed chief pointed to uncertainty as a factor weighing on business investment, saying many business plans are "on pause" amid unclear economic conditions. She acknowledged that "we don’t know if economy will boom later this year."

Regarding potential policy changes, Hammack said she doesn’t "see imminent need to cut rates" and believes the Fed is "pretty close to where the neutral rate is."

Hammack also addressed tariffs, stating that while they are seeing impacts "in discrete places," the full effect remains uncertain, adding "we don’t know what tariff impact will be."

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