Fed’s Hammack Says Rate Cuts May Prolong Inflation, Boost Risks
NegativeFinancial Markets

- Beth Hammack, President of the Federal Reserve Bank of Cleveland, indicated that interest rate cuts aimed at supporting the labor market may inadvertently extend the duration of inflation exceeding target levels and increase financial stability risks.
- This development is significant as it highlights the delicate balance the Federal Reserve must maintain between fostering employment and controlling inflation, suggesting that rate cuts could have unintended negative consequences for the economy.
— via World Pulse Now AI Editorial System
