Beth Hammack isn't mincing words. In a LinkedIn post Friday, the Cleveland Fed chief wrote, "Right now, what I'm hearing is that it's time to act," framing the message around curbing inflation. She added that both the latest numbers and what she's hearing locally suggest monetary policy is not bearing down on the economy enough right now.
Hammack described speaking to a Northeast Ohio manufacturer that urged the Fed to raise rates, noting many inputs were climbing at double-digit rates. That kind of feedback, paired with recent data, is informing her stance.
Hammack was one of three policymakers who dissented from July's decision to keep rates on hold. The next interest rate decision lands Sept. 15-16. Markets, reacting to Friday's unexpectedly robust employment figures, now peg the odds of a hike at slightly above 60% for this month's meeting.
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A public "time to act" from a regional Fed president, plus her July dissent, adds to the drumbeat heading into the mid-September meeting. Markets are already assigning better-than-even odds to a hike, which can ripple into borrowing costs and savings yields. If you're planning a big purchase or eyeing higher cash returns, the mid-month decision is the next key mile marker.
