Two Federal Reserve voting members both signal hawkish: interest rates may stay "on hold for the long term," with the possibility of a rate hike not ruled out

BlockBeats News, February 11 — Cleveland Federal Reserve Chair Beth Hammack stated that during the assessment of incoming economic data, interest rates may remain at current levels for an extended period.

“Rather than trying to fine-tune the federal funds rate, I would prefer to be patient and cautious while evaluating the impact of recent rate cuts and monitoring economic performance,” Hammack said Tuesday in Columbus, Ohio. “Based on my forecast, we may keep rates unchanged for quite some time.”

Hammack has repeatedly urged her colleagues on the Federal Open Market Committee (FOMC) to exercise caution regarding rate cuts to avoid reigniting inflation. She supported the decision to hold rates steady last month, after the Federal Reserve had cut rates three times in a row by the end of 2025.

Dallas Fed President Lorie Logan also spoke on Tuesday, supporting the continuation of steady rates unless there is new “material” softening in the labor market.

“We will learn in the coming months whether inflation is retreating toward our target and whether the labor market can remain stable,” Logan said at an event in Austin on Tuesday. “If so, that would tell me that our current policy stance is appropriate, and there is no need for further rate cuts to achieve our dual mandate.” She added, “Conversely, if we see inflation decline while the labor market experiences further material cooling, then a rate cut may become appropriate again.”

Both Logan and Hammack are voting members of the FOMC this year. (Jin10)