FED’S HAMMACK IS INFLATION-WARY AND PREFERS HOLDING RATES STEADY INTO THE SPRING Cleveland Fed President Beth Hammack said there is no need to change interest rates for several months after the Fed cut rates by a total of 0.75 percentage points over three meetings. She opposed those cuts, citing greater concern about persistent inflation than labor-market weakness, and will become a voting member of the policy committee in 2026. Hammack said November’s 2.7% year-over-year CPI likely understated inflation due to data distortions from the government shutdown, putting true inflation closer to 2.9–3.0%. She believes the neutral interest rate is higher than widely assumed, meaning policy may already be mildly stimulative. Hammack favors holding the benchmark rate at 3.5%–3.75% until at least spring to assess tariff-related price pressures, as inflation has remained near 3% for about 18 months.(*Walter Bloomberg)