Fed’s Hammack says rates on hold for a ‘good while’

Federal Reserve Bank of Cleveland President Beth Hammack said interest rates are well positioned and she prefers for them to remain steady, but also sees the possibility that they may need to be adjusted in either direction. 

“My baseline is that we’re going to remain on hold for a good while, but I do think that there’s two-sided risk to rates,” Hammack said Wednesday during an interview with CNBC. “I think there’s risk that we might need to be more accommodative, or more restrictive, depending on how the data comes out.”

Fed officials have left their benchmark rate unchanged this year after three quarter-point reductions at the end of last year. They are monitoring how the war with Iran will ripple through to the economy and inflation.

Officials are expected to leave their benchmark rate unchanged when they meet on April 28-29, according to pricing in futures contracts.