Cleveland Fed Mentions 'June Rate Cut'... "Convincing Data Needed"

JOON HYOUNG LEE

Summary

Beth Hammack, President of the Cleveland Federal Reserve Bank, mentioned the possibility of a June rate cut, stating that the US Fed could act if convincing data emerges.
President Hammack emphasized the need for a cautious approach in situations of rising inflation and decreasing employment, and assessed that hard data is positive.
She clarified that the Fed's goal is to adjust the real economy, not the market, while mentioning concerns about uncertainty based on soft data.

*Beth Hammack, President of the Cleveland Federal Reserve Bank, speaks in an interview with US CNBC on the 24th (local time). Photo = CNBC website capture*

Beth Hammack, President of the Cleveland Federal Reserve Bank, mentioned the possibility of a rate cut in June.

In an interview with US CNBC on the 24th (local time), President Hammack said, "If convincing data emerges by this June, the Federal Reserve (Fed) can act." This means that if the Fed can gauge the future economic direction through data, it may proceed with a rate cut.

President Hammack emphasized the need for a "cautious approach" regarding rate cuts. She stated, "If inflation rises and employment decreases, the situation can become complicated," and added, "Now is the time to go slowly while ensuring we are heading in the right direction."

Regarding 'hard data' that appears in actual figures, she responded, "It is currently positive." President Hammack said, "Hard data is in good shape, but 'soft data (survey-based economic indicators)' shows high concerns about uncertainty," and added, "(The Fed) is not trying to adjust the market but the real economy."