Cleveland Fed President Beth Hammack says policymakers still have time to assess incoming data before deciding their next interest-rate move. Her comments followed a weak September jobs report. Investing.com, citing Reuters, noted that the headline number alone may not settle the Fed's next decision.
What the September Jobs Report Showed
- Payroll gain: just 29,000 jobs in September.
- Unemployment rate: up to 4.2% from 4.1%.
- Wages: average hourly earnings rose 0.1% on the month and 3.0% from a year earlier.
What Hammack Said
Speaking to PBS News Hour, Hammack said the report is consistent with recent hiring. She pointed to average gains of 41,000 jobs a month over the past year. By her estimate, that is largely in line with the break-even level, which suggests hiring is stable. She added that a lot more information will arrive before the Fed's end-of-month meeting, leaving ample time to set the appropriate stance for both sides of its mandate. She places more weight on underlying trends than on any single monthly release.
Where Fed Policy Stands
The Fed raised its target rate by a quarter point last month, to a range of 3.75% to 4%. Officials had projected another increase before year-end. Comments from several officials this week indicate no action is likely at the October 27-28 FOMC meeting, so the timing of any further tightening depends on incoming data.
Data to Watch Before the Meeting
- October 14: September consumer price index (CPI).
- October 15: September producer price index (PPI).
Why It Matters for Markets
Hammack has been an early supporter of higher rates to curb inflation. Her patient tone, together with weak hiring, lowered expectations of an October hike. Weak jobs data keeps the Fed balancing slower hiring against persistent price pressures. That leaves the dollar, bond yields and funding costs sensitive to the next inflation prints.