Fed’s Hammack: Would not have cut rates

Federal Reserve Bank of Cleveland President Beth Hammack is due to participate in a fireside chat at the Evolving Landscape of Bank Funding Conference hosted by the Federal Reserve Bank of Dallas on Friday. She said that she would not have cut rates and that all of us would go out into the districts, getting a robust picture of the economy. 

Key Quotes

Would not have cut rates.

Challenged on both sides of mandate.

Some emerging signs of softness in labor, including layoffs.

Now around estimate of neutral.

Barely restrictive.

Need to maintain some restriction to bring down inflation.

Tariffs just one piece of inflation puzzle; also electricity, insurance.

Little to no progress on core services ex housing, which plus the tariffs creates more concerning picture.

All of us going out into districts, getting a robust picture of economy.

Don't want to understate importance of gold standard govt data.

Cut was because of sharp drop in payrolls.

Since September, data to me says it's not obvious shift in labor market is on demand side."