Fed’s Hammack Says September Jobs Data Supports Cautious Rate Path

Federal Reserve Bank of Cleveland President Beth Hammack commented that the September US employment report aligns with recent hiring trends, providing the central bank with time to evaluate data before making its next monetary policy decision. The report showed a modest gain of 29,000 jobs, while the unemployment rate rose to 4.2%. Hammack noted that the figures reflect a period of stability in hiring, with average monthly job creation over the past year around 41,000.

Hammack emphasized that the Fed has several weeks to assess incoming economic data before its next policy meeting. Officials will review additional employment, inflation, and economic activity indicators to determine the appropriate policy stance. She has been a proponent of higher interest rates to control inflation and bring it back toward the Fed’s target.

Her remarks follow recent signals from several Fed officials that policymakers have time to evaluate the economic outlook before adjusting interest rates. The September employment data, despite weak headline numbers, did not prompt an immediate change in approach. The Fed last month raised its benchmark interest rate to a range of 3.75% to 4%, with indications that another increase could come before the year’s end, though recent comments suggest no immediate action is expected at the October 27-28 meeting.

The latest remarks underscore the Fed’s focus on balancing its dual mandate of maximum employment and price stability. With hiring showing signs of slowing but remaining stable, policymakers are likely to weigh labor-market trends against persistent inflation pressures before deciding on further rate increases.