Beth Hammack, President of the Cleveland Fed, said monetary policy is not restrictive enough as inflation remains above 3% and the labor market stays stable near her estimate of maximum employment. She cited business feedback from the Fourth Federal Reserve District, including a northeastern Ohio manufacturer facing double-digit increases in several input costs. Market pricing has reduced expectations for Federal Reserve rate cuts between July and October 2026, with the implied probability of a cut at the October 28 meeting falling to 0.1% from 1% a day earlier. The pricing is consistent with scenarios in which the Fed holds rates steady or raises them rather than eases policy. Investors are watching inflation and employment data, comments from Chair Kevin Warsh and other officials, and the September FOMC meeting and dot plot for further guidance.