Hammack: The current monetary policy is in a good state and it is appropriate to keep interest rates unchanged.

Cleveland Federal Reserve President Loretta Mester stated that, in her view, the current monetary policy is at an appropriate level and interest rates can be kept unchanged. On Tuesday, during an event in Ohio focused on banking and monetary policy, Mester said that based on her personal forecast, patience can be maintained while assessing the effects of previous rate cuts. In her published speech, she wrote: "In my judgment, we can keep interest rates unchanged for a longer period of time." Mester believes that the current federal funds rate is close to a neutral level and does not exert significant restraining effects on the economy. She noted that, in balancing the dual goals of maximizing employment and maintaining price stability, recent labor market data show that the situation is gradually stabilizing. However, she also mentioned that the current inflation level remains relatively high. Mester pointed out that although tariffs remain a key concern for many businesses, they are not the sole driver of inflationary pressures; rising costs in other sectors such as healthcare and electricity are also pushing up overall prices. At present, it is still unclear whether these widespread cost pressures have peaked.