Fed's Beth Hammack explains her dissent over central bank's bias toward cutting rates
Fed's Beth Hammack explains her dissent over central bank's bias toward cutting rates
Jennifer SchonbergerFri, May 1, 2026 at 12:02 PM UTC
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Cleveland Fed president Beth Hammack said Friday that while she supported holding interest rates steady at this week’s Fed policy meeting, she dissented because she did not favor language in the policy statement maintaining a bias towards cutting interest rates.
“This forward guidance was put into the statement to signal a pause rather than an end to the easing cycle,” Hammack said in a statement. “I see this clear easing bias as no longer appropriate given the outlook.”
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The policy statement maintained language that says the central bank will consider the extent and timing of “additional adjustments” to interest rates.
Hammack noted that inflation pressures remain broad-based, and rising oil prices add still more inflation pressure. She sees the economy as resilient so far this year, with the unemployment rate little changed at 4.3%. However, she wrote that while she sees upside risks to inflation, she also sees downside risks to growth and employment.
Hammack was one of three members of the Federal Open Market Committee who dissented to including this language in the policy statement.
Source: “AOL Money”
