Fed's Hammack supports maintaining current interest rates, tells NYT it's premature to assess effects of Iran conflict

Fed's Hammack Advocates for Unchanged Interest Rates Amid Middle East Uncertainty

Beth Hammack, President of the Federal Reserve Bank of Cleveland, emphasized in a recent interview with the New York Times that it remains premature to assess the economic consequences of the ongoing conflict in Iran. She expressed support for maintaining current interest rates for an extended period.

Hammack highlighted the necessity of keeping monetary policy at a level that encourages inflation to return to target, while also being mindful of any potential weakening in the job market. Her comments come as Federal Reserve officials begin to evaluate the expanding turmoil in the Middle East, which could present short-term challenges for both U.S. inflation and economic stability.