Fed’s Hammack (hawk) is back on the newswire after speaking earlier today and says:
- The US economy has been remarkably resilient.
- Hears from contacts inflation too high in moving in wrong direction.
- Employment side of Fed mandate challenged that amid job market softening.
- Current unemployment around maximum level.
- Some of inflation may be tariff driven by service inflation is a real concern.
- This is a difficult time for monetary policy.
- That policy needs to remain somewhat restrictive to push inflation pressures down.
- Expects tariffs to drive up inflation into early next year.
- Right now job market looks balance but there are reasons for concern.
- Too soon to say what will happen with AI
Earlier today Hammack said:
“I am worried about the labor market,” Hammack said. But looking at the balance between the labor market and inflation, “we’ve got this persistent high inflation that is sticking around, when all is said and done it will be the better part of a decade.”
She is a hawk and will be a voting member in 2026.
