Hammack Pushes Back on Rate Cut Expectations as Bitcoin Slides Below $113K

Cleveland Federal Reserve President Beth Hammack said current economic data does not support a case for cutting interest rates, challenging market expectations ahead of the Jackson Hole Economic Symposium.

“If the meeting were tomorrow, I wouldn’t support a rate cut,” Hammack told Yahoo News during an interview in Wyoming. “Inflation remains too high and has been trending upward over the past year.”

She also noted that recent tariffs are only beginning to filter into inflation metrics and their full effect likely won’t be visible until 2027.

Fed Signals Hold as Market Reassesses

Hammack’s comments signal continued support for Fed Chair Jerome Powell’s hawkish stance, even after two dissenting FOMC votes in favor of cuts last month and growing political pressure from President Trump, who has repeatedly called for easier policy.

Her remarks follow a wave of public appearances from prominent former officials urging aggressive easing. Most notably, ex-St. Louis Fed President Jim Bullard appeared on air earlier today calling for rates 100 basis points lower than current levels.

Bitcoin Retreats as Rate Cut Odds Fall

Markets swiftly repriced expectations. According to CME FedWatch, the probability of a September rate cut has fallen from near-certainty (99%) to 71% in just one week.

Bitcoin, which surged above $124,000 last week on dovish momentum, has since dropped nearly 10% to $112,800 — its lowest level of the session — following Hammack’s remarks.

Focus Turns to Powell’s Friday Address

Investors are now closely watching Fed Chair Powell’s upcoming keynote at Jackson Hole. While speculation around a pivot lingers, Powell is widely expected to reinforce the Fed’s data-dependent approach and emphasize that inflation remains too elevated for immediate easing.