Top Fed Official Calls for Extended Rate Pause Amid Inflation Concerns

Beth M. Hammack, president of the Federal Reserve Bank of Cleveland, says it's too early to gauge the economic impact of the Iran war and backs holding interest rates steady for 'quite some time'.

Published on Mar. 4, 2026

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Beth M. Hammack, president of the Federal Reserve Bank of Cleveland, is wary of lowering interest rates further despite pressure from the White House. Hammack, a voting member of the Fed's rate-setting committee this year, is concerned about persistent inflation and wants to see clear signs of it retreating before supporting any rate cuts. She believes the Fed should hold rates steady for 'quite some time' to allow the central bank to focus on stamping out price pressures, even as the escalating conflict in the Middle East represents a new inflationary risk.

Why it matters

Hammack's stance puts her at odds with President Trump's pick to lead the Fed, Kevin M. Warsh, who is likely to face pushback if he tries to significantly lower rates. Hammack's reluctance to cut rates could lead to more divided votes on the policy-setting committee, which has seen an increase in dissents as officials have confronted seismic policy changes since Trump returned to the White House.

The details

Hammack has been skeptical of rate cuts, breaking with the rest of the policy-setting committee and voting against the decision at the December 2024 meeting to lower rates by a quarter of a percentage point. She cited economic resilience and worries about elevated inflation. Hammack wants to see clear evidence that inflation is retreating before supporting any rate cuts, and she is wary about hinging rate decisions on forecasts, including the potential economic impact of artificial intelligence. She also recommended proceeding cautiously with shrinking the Fed's $6.5 trillion balance sheet, saying the central bank needs to be 'very thoughtful' and 'methodical' in its approach.

  • In the past 12 months, the Fed has made little progress in closing the gap between its 2 percent inflation target as President Trump's sweeping tariffs reshuffled global trade.
  • The Fed is widely expected to hold rates steady at its next meeting on March 17-18, 2026.

The players

Beth M. Hammack

President of the Federal Reserve Bank of Cleveland and a voting member of the Fed's rate-setting committee this year.

Kevin M. Warsh

President Trump's pick to lead the Federal Reserve, who is likely to face pushback if he tries to significantly lower interest rates.

Jerome H. Powell

The Federal Reserve's chair since 2018.

Scott Bessent

The Treasury secretary.

Michelle W. Bowman

The Fed's vice chair for supervision.

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What they’re saying

“We're in a good spot from a policy perspective. I think we could be on hold for quite some time.”

— Beth M. Hammack, President, Federal Reserve Bank of Cleveland (New York Times)

“If we're lowering rates into a world where there's more persistent inflation, then inflation expectations are going to go up, investors are going to demand more compensation, and yields are going to go up in the back end of the curve.”

— Beth M. Hammack, President, Federal Reserve Bank of Cleveland (New York Times)

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.