Fed's Hammack Says Holding Rates Steady Is 'Reasonable,' Warns on Persistent Inflation
Summary
- Fed official Beth Hammack said a rate hold is reasonable given the uncertainty.
- She said monetary policy may not be restrictive enough to lower inflation and is concerned about persistent inflation pressures.
- The crypto market has entered a period of heightened volatility as rate uncertainty coincides with outflows from spot Bitcoin ETFs.
Forecast Trend Report by Period
A Federal Reserve official said holding interest rates steady is reasonable for now, while warning that inflation pressures could persist. Markets remain uncertain about the Fed's policy path.
Beth Hammack said keeping rates at current levels is "reasonable" given the uncertainty, according to Walter Bloomberg on June 2.
She also expressed concern that monetary policy may not be restrictive enough to bring inflation down. Her biggest worry, she said, is the growing risk that inflation pressures could persist.
The remarks came ahead of US inflation and employment data. In recent weeks, concerns over Middle East-driven energy price volatility, tariff costs and sticky services inflation have continued to curb expectations for Fed rate cuts.
Markets increasingly expect the Fed to keep rates unchanged for now, but to hold a restrictive stance for longer if inflation does not cool further. The crypto market has also entered a more volatile phase as interest-rate uncertainty coincides with outflows from spot Bitcoin exchange-traded funds.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
