Fed’s Hammack Says September Jobs Report Supports Data-Driven Rate Approach

Federal Reserve Bank of Cleveland President Beth Hammack said the September US employment report aligned with recent hiring trends, providing the central bank with time to evaluate economic data before adjusting monetary policy. The report showed a modest gain of 29,000 jobs, while the unemployment rate rose to 4.2%. Hammack noted that these figures reflected a stable labour market, with average monthly job creation over the past year at around 41,000.

Hammack emphasized that the Fed has several weeks to review additional employment, inflation, and economic activity indicators before its next policy meeting on October 27-28. She has been a proponent of higher interest rates to control inflation and meet the Fed’s 2% target. The Fed last raised rates by 25 basis points in September, bringing the benchmark rate to a range of 3.75% to 4%.

Recent comments from other Fed officials suggest no immediate action is expected at the upcoming meeting. The September jobs data, while weaker than expected, did not alter the Fed’s cautious approach. Policymakers are balancing maximum employment and price stability, with labour-market trends and inflation pressures guiding future rate decisions.