Fed's Hammack (2026 voter) is speaking and says:
- Both sides of the Fed mandate bar under pressure.
- It is important to maintain modestly restrictive policy to lower inflation.
- It is just now tariff impacts are starting to affect the economy.
- Full tariff impact will be clear until next year.
- On sure if tariffs will ultimately be just a one time impact
- Biggest concern inflation is too high that inflation has been trending in wrong direction
- Labor supplies come down dramatically
- Fed needs to stay laser focus on too high inflation
- She enters each meeting with an open mind
- there is a lot of data between now and the FOMC meeting
- If the meeting was tomorrow she would not see a case for reducing interest rates
- We have a small distance to get to the neutral rate
- Does not see any sign have a notable economic downturn.
- There is no lead for stimulative policy
A summary of the comments in topic format:
Mandate pressures: Both inflation and employment sides of the Fed’s dual mandate are under strain.
Policy stance: Supports keeping policy modestly restrictive to bring inflation lower.
Tariffs:
Tariff impacts are only starting to show in the economy.
Full effects won’t be clear until next year.
Uncertainty if tariffs will be a one-time shock or more persistent.
Inflation:
Biggest concern is inflation being too high.
Notes inflation trend has been moving in the wrong direction.
Emphasized Fed must remain laser-focused on inflation.
Labor market: Labor supply has declined significantly.
Policy outlook:
Enters each FOMC meeting with an open mind, stressing incoming data will shape views.
If the meeting were tomorrow, she would not support a rate cut.
Believes only a small gap remains to reach the neutral rate.
Economic outlook:
No evidence of a notable economic downturn.
No justification for stimulative policy at this point.
