Cleveland Fed Pres. Beth Hammack is speaking and says:

• I see a lot of uncertainty in economic outlook.
• Fed should be neutral and policy stance outlook given the uncertainty.
• Higher prices are weighing on consumer’s ability to stand.
• Iran war can impact both sides of Fed’s mandate.
• There was a lot more consensus that it appears at Fed meeting
• Sees interest rates on hold for quite some time
• Sees low and stable unemployment right now.
• Job market remains low higher/low fire environment.
• Fed has been missing inflation target for years.
• War means price pressures could be more persistent.
• High inflation forcing more people toward trade-offs.
• Watching closely how long Iran war lasts
• excited for new Fed chair Warsh when he arrives
• inflation expectations remain well anchored to right now.
• High inflation could start weighing on demand.
• Uncertainty over outlook should translate to policy uncertainty.
• Can’t put hard number on how long Fed should hold rates steady.

Hammack comments provide a cautious and modestly hawkish message, emphasizing that the Federal Reserve should remain patient and keep interest rates on hold given the high level of uncertainty surrounding the economic outlook. She stressed that policymakers should maintain a neutral policy stance for now, noting that there was actually more consensus within the Fed meeting than many observers may have perceived. Her expectation that rates could remain unchanged for “quite some time” reinforces the broader higher-for-longer narrative currently guiding Fed policy.

A major focus of Hammack’s comments was inflation. She acknowledged that higher prices are increasingly weighing on consumers and forcing households into tougher financial trade-offs, while also warning that geopolitical risks — including the Iran conflict — could lead to more persistent inflation pressures. Although she described the labor market as stable, with low unemployment and a “low hire/low fire” environment, she did not indicate that economic conditions have weakened enough to justify rate cuts. Overall, the tone of her remarks suggests the Fed remains more concerned about inflation staying elevated than about an imminent slowdown in growth or employment.

Hammack is a 2026 voter. Recall at the last meeting that she voted to keep interest rates unchanged at the last FOMC meeting, supporting the decision to hold the federal funds target range at 3.50% to 3.75%. However, she dissented from the wording of the policy statement because she objected to language that continued to imply an easing bias — meaning the Fed was still signaling that future rate cuts were likely.