Federal Reserve Signals Patience on Interest Rates as Inflation Remains Above Target

Fed officials, including Cleveland's Beth Hammack and Philadelphia's Patrick Harker, emphasize a steady approach to monetary policy while inflation progress slows.

The Federal Reserve is expected to hold interest rates steady at 4.25%-4.50% as officials monitor inflation trends and labor market conditions.
Cleveland Fed President Beth Hammack highlighted that inflation remains above the 2% target, with uneven progress despite a strong job market.
Philadelphia Fed President Patrick Harker stated that current rates are restrictive enough to curb inflation without harming economic growth.
Hammack suggested the Fed's balance sheet reduction, or quantitative tightening, could continue cautiously, with temporary liquidity measures if needed.
Fed policymakers remain divided on the timeline for potential rate cuts, emphasizing the need for further data to assess inflation risks and economic performance.