Bloomberg Talks Fed's Beth Hammack Talks Jobs Report, Rate Decision and Powell
Aug 1, 2025
Beth Hammack, President and CEO of the Federal Reserve Bank of Cleveland and former Goldman Sachs veteran, shares her insights on the latest U.S. jobs report. She expresses confidence in the Fed's decision to keep interest rates steady, despite a decline in job creation. The discussion highlights the delicate balance between sustaining employment and inflation management. Hammack also navigates the challenges posed by political pressures on the Fed's credibility, emphasizing a data-driven approach to future economic policies.
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Labor Market Shows Early Weakening Signs
- The U.S. labor market remains generally healthy and in balance despite disappointing recent job numbers.
- Signs of weakening should be watched carefully, especially given immigration impacts and steady unemployment rates.
Inflation Remains the Bigger Challenge
- The Fed prioritizes controlling inflation as the main challenge over employment issues.
- Inflation remains elevated and persistent, causing significant pain for many American households.
Business Uncertainty Affects Labor Plans
- Businesses face substantial uncertainty affecting investments and staffing decisions.
- Demand shifts could lead to labor market weakening, prompting possible Fed response balancing inflation concerns.