USD/CAD Forecast: Breakdown deepens as Fed hike bets fade

From finance.yahoo.com | Aug 10, 2026 |
12 comments

Cleveland Federal Reserve president Beth Hammack said Monday she anticipates more than one interest rate hike will be required to rein in what she calls broadening inflation. “I would say in general, one 25 basis point move probably doesn’t do a whole lot for the economy,” Hammack told Yahoo Finance in an interview. “So it’s probably some number of [movements]. But I don’t want to prejudge what that number is going to be.” She added, “I don’t know exactly where we will end.” Hammack dissented at the Fed’s July policy meeting when the Federal Open Market Committee held interest rates steady, preferring to have raised rates by a quarter percentage point. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments She said she does not think interest rates in the range of 3.5% to 3.75% are “meaningfully restricting” the economy right now. “When I’m talking to businesses, I’m not hearing that they’re sensing any restraint from investments in growth based on where interest rates are,” Hammack said. “So to me that says that now is the time to act.” She cautioned that the longer the Fed waits, the longer it misses its inflation goal of 2% and the harder inflation will be to bring back down. Just in | Fed’s Hammack warns that inflation is unlikely to decrease without intervention. Just in | Fed’s Hammack Reports No Indications of Job Market Weakness