Fed’s Hammack Warns Both Inflation and Employment Targets Under Strain

Federal Reserve policymaker Hammack said both elements of the central bank’s dual mandate—price stability and maximum employment—are currently "under pressure." Speaking in an interview published by Yahoo Finance on 21 August, she indicated that rising inflation and a cooling labour market are challenging the Fed’s policy framework simultaneously. Hammack’s comments highlight the delicate balance officials must strike as they prepare for upcoming rate-setting meetings. The remarks add to market expectations that the Federal Open Market Committee may need to weigh the risks of entrenched inflation against the possibility of weaker job growth in determining the future path of interest rates.