Fed's Hammack Prefers Rate Stability Amid Inflation Concerns

Beth Hammack, the president of the Cleveland Federal Reserve, thinks the central bank should keep interest rates the same for a few more months.

She's worried about inflation, which is the general increase in prices for goods and services.

Even though the official inflation rate was 2.7% in November, she thinks it might actually be closer to 3%.

She believes the economy is doing well and doesn't need a rate cut right now.

Hammack will become a voting member of the rate-setting committee next year and suggests waiting until spring to see if inflation goes down or if the job market gets weaker.

She's also concerned that businesses might raise prices more in the first quarter due to higher costs, including tariffs.