Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com -- Cleveland Federal Reserve President Beth Hammack said Friday that policymakers need to be cautious about removing monetary policy restrictions as she expects inflation to continue rising.
Speaking on CNBC, Hammack emphasized the need to maintain a "modestly restrictive stance of policy" while noting that unemployment may also continue to increase.
"We need to be cautious about removing restriction," Hammack said, adding that she is "squarely focused on inflation mandate" at present.
The Cleveland Fed chief indicated that the central bank is "only a very small distance to neutral rate" and stressed that officials need to "judge magnitude, persistence of mandate misses."
Regarding potential policy changes, Hammack mentioned that she "heard the Chair is open-minded about September," suggesting Fed Chair Jerome Powell may be considering policy adjustments at the next Federal Open Market Committee meeting.
Hammack also noted that the "breakeven rate of jobs we need has shifted materially," pointing to changing labor market dynamics.
When asked about Fed Governor Lisa Cook, Hammack said she knows Cook "to be a person of high integrity" but doesn’t "have Cook details beyond what I’ve read in press."
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