Cleveland Fed’s Hammack says policymakers have time before next rate decision

  • Beth Hammack said Fed policymakers have time to assess data before deciding on interest rates.
  • September payrolls increased by 29,000 as unemployment rose to 4.2%.
  • The Fed raised rates 25 basis points last month to a 3.75%-4% target range.

Federal Reserve Bank of Cleveland President Beth Hammack said policymakers have time to review additional economic data before deciding whether to adjust interest rates. She described September’s employment report, which showed payrolls increasing by 29,000 and unemployment rising to 4.2%, as broadly consistent with recent labor-market trends. Average monthly job creation over the past year was 41,000, close to Hammack’s estimate of the pace needed to keep employment stable. The comments indicate the weak headline jobs figure alone may not determine the Federal Reserve’s next move. Policymakers are due to receive more information before the Federal Open Market Committee (the Fed’s rate-setting committee) meets on Oct. 27-28. The Fed raised its benchmark rate by 25 basis points last month to a target range of 3.75% to 4% and projected another increase before year-end. Recent official comments have pointed to rates remaining unchanged at the October meeting, with the timing of any further tightening dependent on incoming data.

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