In an interview with FOX, Hammack emphasized the need to assess the impact of new policies on inflation before supporting any quantitative easing (QE). His comments suggest resistance to a rate cut at the upcoming meeting on July 30.
While market participants yearn for lower rates, Hammack made it clear that controlling inflation remains the central bank's top priority. He believes that acting too soon with a Fed rate cut could reverse recent gains in price stability.
Hammack's cautious stance aligns with that of Federal Reserve Chairman Jerome Powell, who reportedly is considering his resignation. Powell has reiterated time and again that it is better to wait and understand the impact that Trump's tariffs could have on inflation.
Economic growth remains steady, but authorities are focused on sustained improvement in inflation data. Hammack's message reflects the need for more convincing evidence before approving a rate cut.