Next year, new FOMC voting members will be the first to adopt a hawkish stance: interest rates should remain frozen until spring, and inflation remains a major concern.

According to Mars Finance, Cleveland Federal Reserve President Beth Hammack stated that after the Fed's three consecutive rate cuts at its past meetings, she believes there is no need to adjust interest rates in the coming months. Hammack opposed the recent rate cuts because her concerns about persistently high inflation outweigh her worries about potential labor market fragility—the latter having prompted officials to cut rates by a cumulative 0.75 percentage points over the past few months. Hammack is not a voting member of the Federal Open Market Committee (FOMC) this year but will gain voting rights next year. Hammack suggested that the Fed will not need to adjust its benchmark interest rate, currently in the 3.5% to 3.75% range, until at least next spring. She stated that by then, the Fed will be better able to assess whether recent commodity price inflation is subsiding as the impact of tariffs is more fully absorbed into the supply chain. (Jinshi)