Beth Hammack, President of the Cleveland Federal Reserve and an incoming voting member of the FOMC in 2026, explicitly called for a halt to interest rate reductions in a statement on Sunday. Speaking to the Wall Street Journal, Hammack shattered the market’s assumption of continued easing, stating she sees “no reason to move interest rates for months.”
The Hawk Has Landed
Hammack’s pivot comes just days after the Federal Reserve delivered its third consecutive rate cut on December 10, bringing the benchmark target range to 3.50%–3.75%. While markets had priced in a smooth path to a neutral rate in early 2026, Hammack’s commentary suggests a hard stop.
I prefer to hold policy steady until we see further evidence that inflation is resuming its path to our 2 percent objective.
She dismissed the November CPI reading of 2.7% as misleading, arguing that alternative models place “true” inflation closer to 3.0%. Hammack also cited looming tariffs and supply chain disruptions as inflationary risks that justify keeping rates restrictive.
Market Reaction: Bitcoin Rangebound
Crypto markets reacted with immediate caution. Bitcoin (BTC) failed to reclaim the $
