Fed's Hammack Says Interest Rates Could Remain Steady "For Quite Some Time"

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Federal Reserve Bank of Cleveland President Beth Hammack said the U.S. central bank faces no urgency to change interest rates this year, noting the Fed could keep rates steady "for quite some time" amid a "cautiously optimistic" outlook for economic activity. Hammack, who holds a vote on the interest-rate-setting Federal Open Market Committee this year, said she supported the central bank's decision to hold its interest rate target range steady at between 3.5% and 3.75% at the end of January.

Why it matters

Hammack's comments suggest the Fed may be inclined to pause its interest rate hikes, which could provide some relief for consumers and businesses that have been grappling with higher borrowing costs. However, Hammack also noted that inflation remains "too high" and said it was important that price pressures ease.

The details

In her speech, Hammack said she believes the Fed is in a "good position to keep the funds rate at this level and see how things play out" with monetary policy most likely around a setting that neither restrains nor drives economic activity. She added that "rather than trying to fine tune the funds rate, I'd prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs."

• Hammack made these comments on Tuesday, February 10, 2026.
• The Fed trimmed its target by 75 basis points last year as it sought to buoy a softening job market while at the same time keep in place enough restraint to bring inflation back down to the 2% target.

What they’re saying

What’s next

It's very likely rate cuts could reemerge as an issue if Kevin Warsh is confirmed to succeed Jerome Powell as Fed chair when the current leader's term ends in May.