Fed's Two Key Hawks Speak in Unison: Interest Rates May Stay on Hold for the Long Term, Not Ruling Out Possibility of Rate Hike

BlockBeats News, February 11th, Cleveland Fed President Hammack said that interest rates may remain at their current levels for an extended period as officials evaluate incoming economic data.

“Rather than trying to fine-tune the federal funds rate, I would prefer to be patient and cautious as we assess the impact of recent rate cuts and monitor economic performance,” Hammack said Tuesday in Columbus, Ohio. “Based on my outlook, we may keep rates unchanged for quite a long time.”

Hammack has repeatedly urged her colleagues on the Federal Open Market Committee (FOMC) to be cautious about rate cuts to avoid fueling a rebound in inflation. She supported the decision to hold rates steady last month after the Fed cut rates three times in late 2025.

Dallas Fed President Logan also spoke on Tuesday, supporting the ongoing stance of keeping rates unchanged unless there is new “substantial” softness in the labor market.

“We will find out in the coming months whether inflation is retracing to our target and whether the labor market can remain stable,” Logan said at an event in Austin on Tuesday. “If it does, that will tell me that our current policy stance is appropriate and further rate cuts are not needed to achieve our dual-mandate goals.” She noted, “Conversely, if we were to see inflation recede alongside further substantial cooling in the labor market, then further rate cuts might become appropriate.”

Both Logan and Hammack are voting members of the FOMC this year. (Golden Finance)