Fed’s Hammack tells PBS there’s still time to weigh next monetary policy move

Federal Reserve Bank of Cleveland President Beth Hammack stated on Friday that the September US employment report aligns with the recent pattern of hiring. In an interview with PBS News Hour, Hammack commented on the jobs report, which showed a relatively modest 29,000 hiring gain and an uptick in the unemployment rate to 4.2%. Hammack emphasized that this data fits within the sector's typical monthly growth of 41,000 new jobs over the past year, suggesting a stable hiring trend.

Hammack revealed that the Federal Reserve still has ample information before their meeting at the end of the month, providing time to deliberate on the appropriate monetary policy stance. The Fed aims to strike a balance between addressing inflation and adhering to its dual mandate of maximum employment and stable prices. Hammack has been a vocal advocate for raising interest rates to combat inflation, which she and her colleagues deem excessive.

Recently, several prominent Fed officials suggested that there is still time to assess the data before deciding on another rate hike. The Federal Reserve increased its interest rate target by a quarter percentage point to a range of 3.75% to 4% last month. However, these recent remarks from officials indicate that it is unlikely a rate adjustment will be made at the upcoming Federal Open Market Committee meeting on October 27-28.