%Effective Federal Funds Rate
EFFR
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Hammack warns prolonged wait could increase damage, suggesting rates may stay higher for longer, which is negative for the policy rate as it implies no imminent cuts.
Cleveland Fed President Hammack said that the longer the wait for monetary policy decisions, the greater the damage to the economy. She emphasized the risks of delaying policy decisions and urged timely action. Her remarks could intensify speculation among market participants about the timing of future rate cuts.
Hammack warns prolonged wait could increase damage, suggesting rates may stay higher for longer, which is negative for the policy rate as it implies no imminent cuts.
Hammack's hawkish remarks reduce expectations of rate cuts, likely pushing yields up, but the direction is negative for the yield as it implies higher rates.