Cleveland Fed'den Beth Hammack, enflasyon işçilerin ücret artışlarını yutarken faiz artırımının kesintiye uğramayacağı uyarısında bulundu

Cleveland Fed's Beth Hammack warns one rate hike won't cut it as inflation swallows workers' wage gains

Joseph Zeballos-Roig

Wed, August 12, 2026 at 1:00 PM GMT+3 4 min read

A top Federal Reserve official says she believes it will likely take more than one rate hike to quell the current wave of inflation, though she declined to identify a specific number.

"I would say in general, one 25 basis point move probably doesn't do a whole lot for the economy," Federal Reserve Bank of Cleveland President Beth Hammack said in a Yahoo Finance interview published Monday. "So it's probably some number… But I don't want to prejudge what that number is going to be."

Must Read

• Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one

• Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP

• Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going

She added that the Fed shouldn't fade into the background regarding its mandate to ensure stable prices. "Markets are a complement for the Fed," Hammack told Yahoo Finance. "They're not a substitute. We have to stand behind our words with our actions when appropriate."

Late last month, Fed officials voted 9-3 to keep interest rates unchanged in the range of 3.5% to 3.75% for the fifth time in a row. The three dissenting voices came from regional bank presidents who favored a quarter-point rate increase to address energy supply shocks from the Iran War that pushed up gasoline prices, along with the cost of plenty of other products that rely on diesel for transportation, such as groceries. Hammock was among them.

"Now is the time to act," she said on Tuesday. At a recent City Club of Cleveland event, she said, "Inflation does not merely raise costs. It raises uncertainty."

The Fed's next moves on inflation

Hammack said after the Fed's July meeting that she had heard rising anxiety among consumers and businesses about the recent spike in prices. For many workers, inflation is swallowing most of their wage gains, while businesses grapple with higher shipping costs and inflation-weary customers.

"What I have heard from across the Fourth Federal Reserve District reinforces this view: Businesses describe pricing pressures as broadening rather than fading, and consumers are expressing despair over persistently higher prices," Hammack said in a LinkedIn post.

Fed officials won't reconvene again until mid-September, but a pair of inflation readings will set the stage for its next moves on rates.

The July consumer price index (CPI) will be released on Wednesday, and most analysts believe it will show a 2.5% year-over-year increase after stripping out volatile energy and food prices. The Fed's preferred inflation gauge tracking personal consumption expenditures (PCE) will be published on Aug. 26. If the reports display a round of higher-than-anticipated price increases, pressure will mount on Fed Chair Kevin Warsh to push through interest rate hikes.

Read More: Vanguard reveals what's coming for U.S. stocks — and it could be bad news for this group of investors

The case to hold interest rates steady for now

Not everyone's on board to increase interest rates right away. Fed Governor Lisa Cook, another FOMC voting member, said in an Aug. 5 speech that she believed price pressures would fade over time and supported sitting still on rates.

She argued tariff-fueled inflation on products was mostly in the rearview mirror at this stage and cited analyst forecasts that oil prices would come down by year's end. She also expected AI supply chains to adjust and ward off the price increases on computer chips that are in extremely high demand from tech companies.

"For these three reasons, I felt it was appropriate not to change rates while we see how these factors evolve," she said at an economic luncheon in Alaska. "If I do not see signs of continued disinflation soon, I am prepared to act."

What To Read Next

• The tax breaks in Trump's 'big beautiful bill' expire after 2028 — and experts say most people won't act in time. What to do before the window closes

• Here's the average income of Americans by age in 2026. Are you keeping up or falling behind?

• Robert Kiyosaki says China is 'dumping' the US as America piles on debt. Fortify your riches with 4 key assets

• This fund has historically paid 8% or higher for 25 months, with just a $100 minimum to start — 4 ways to grow your cash without the stock market

Join 250,000+ readers and get Moneywise's best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

This article originally appeared on Moneywise.com under the title: Cleveland Fed's Beth Hammack warns one rate hike won't cut it as inflation swallows workers' wage gains

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.