Fed's Hammack says 'now is the time to act' on raising interest rates
Speakers
Beth Hammack
— President of the Federal Reserve Bank of Cleveland
Summary
Cleveland Fed President Beth Hammack tells CNBC that the latest PCE inflation reading, annualizing near 3%, reinforces her view that the Fed should raise interest rates now. She argues policy is not restrictive, businesses are still borrowing, and persistent inflation risks an inflationary mindset. Hammack also says her neutral-rate estimate is on the higher side of the committee.
- Hammack says the PCE inflation print was in line with the Cleveland Fed nowcast and annualizes near 3%.
- She states that now is the time to act on raising interest rates.
- She sees little restraint in financial conditions, with businesses willing to borrow and raise capital.
- She warns that persistent above-target inflation could begin to embed an inflationary mindset.
- Her neutral-rate estimate tends to be on the higher side of the committee.
- The interview was conducted by Steve Liesman at Jackson Hole.
Ideas
Fed should raise rates now.
Hammack argues the Fed should raise interest rates now because PCE inflation annualizes near 3%, policy does not appear restrictive, businesses are still willing to borrow and raise capital, and the longer inflation stays above target the harder and more painful it will be to bring down. She also notes her neutral-rate estimate is on the higher side of the committee.
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This CNBC video, published August 27, 2026, features Beth Hammack discussing US Interest Rates. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Beth Hammack · Tickers: US Interest Rates