Fed’s Hammack Says She Sees Two-Sided Risks to Interest Rates

Federal Reserve Bank of Cleveland President Beth Hammack reiterated that interest rates could be on hold for quite some time, but signaled officials should be ready to respond to other outcomes.

“Under my base case, I think policy should be on hold for quite some time as we see evidence that inflation is coming down and the labor market stabilizes further,” Hammack said Friday in remarks prepared for a conference in New York. “But it’s easy to envision other scenarios, as well, so I see two-sided risks to rates.”

With less than two weeks to go before their next policy ...