Fed's Hammack (2026 voter) sees no imminent need to change the stance of monetary policy in an economy where inflation is still “too high”

Given the Fed’s need to balance “elevated” inflation and a “softening” job market, these factors joined with rate cuts done last year leave monetary policy “in a good position”. Under her base case, thinks policy should be on hold for quite some time as they see evidence that inflation is coming down and the labour market stabilises further. It’s easy to envision other scenarios, as well, so she sees two-sided risks to rates.