Fed's Two Key Hawks Speak in Unison: Interest Rates May Stay on Hold for the Long Term, Not Ruling Out Possibility of Rate Hike

**February 11 – Cleveland Fed President Hammack said Tuesday that interest rates could stay at current levels for an extended period as officials weigh incoming economic data.** “Instead of fine-tuning the federal funds rate, I’d prefer to be patient and cautious while assessing the impact of recent rate cuts and monitoring economic performance,” Hammack told an audience in Columbus, Ohio. “Based on my outlook, we may keep rates unchanged for quite a long time.” Hammack has repeatedly urged her Federal Open Market Committee (FOMC) colleagues to exercise caution on rate cuts to avoid reigniting inflation. She backed the decision to hold rates steady last month, following three Fed rate cuts in late 2025. Dallas Fed President Logan also spoke Tuesday, supporting the current stance of keeping rates on hold unless the labor market shows new “substantial” softness. “We’ll learn in the coming months whether inflation is returning to our target and whether the labor market can stay stable,” Logan said at an event in Austin. “If so, that will signal our current policy stance is appropriate, and further rate cuts aren’t needed to meet our dual mandate.” She added: “Conversely, if we see inflation cool alongside further substantial cooling in the labor market, then additional rate cuts might become appropriate.” Both Logan and Hammack are voting members of the FOMC this year. (Golden Finance)