Bloomberg Talks: Cleveland Fed President Beth Hammack Talks Interest Rates, Jobs Report

Date: March 6, 2026
Host: Bloomberg
Guest: Beth Hammack, President of the Federal Reserve Bank of Cleveland

Episode Overview

This episode features an in-depth interview with Beth Hammack, President of the Cleveland Federal Reserve, focusing on the current state of the U.S. economy, interest rate policy, and the implications of recent jobs reports and inflation data. Hammack discusses the Fed’s balancing act between inflation control and supporting the labor market, the incoming potential Fed chair, and the considerations around the Federal Reserve’s balance sheet and monetary policy strategy.

Key Discussion Points and Insights

The Labor Market & Jobs Report

• The latest jobs report showed disappointing numbers, mainly due to increased unemployment.

• Hammack urges caution in over-interpreting single reports but acknowledges the disappointment.

• The outlook from businesses in her district remains broadly optimistic; many are investing and see robust demand.

• The labor market is described as “stabilizing,” with unemployment hovering around 4.3-4.4%.

  Quote:

  “Certainly this number was a disappointment, mostly because it means that there are more Americans who aren’t working… We've had a labor market that I would characterize as stabilizing.”
  — Beth Hammack, 01:01

Inflation & Monetary Policy

• Despite the healthy economic outlook, inflation remains above the Fed’s 2% target, stuck around 3% with “virtually no progress over the past two years.”

• Hammack sees "two-sided risks" to rates, meaning that the Fed must remain vigilant on both inflation and unemployment fronts.

• Believes current monetary policy is “around neutral,” not overly restrictive.

  Quote:

  “We need to make sure that we're maintaining a balance of policy that's going to help bring inflation back down to target while still supporting the labor market.”
  — Beth Hammack, 01:38

  Quote:

  “I think we're right around neutral… they're [businesses] still willing to make investments, they're taking out loans… all of that says to me that we are around that neutral level.”
  — Beth Hammack, 02:37

Interest Rate Outlook

• Hammack suggests the Federal Reserve could “be on hold for quite some time” instead of making hasty policy adjustments.

  Quote:

  “Yeah, I’m just one person, but as I see it, I think we could be on hold for quite some time.”
  — Beth Hammack, 03:23

Upcoming Fed Leadership Transition

• Discusses the imminent appointment of a new Fed chair (potentially Kevin Warsh).

• Emphasizes the collaborative nature of the FOMC: “one guy can’t do it himself… 19 people on the committee.”

• Anticipates robust discussions and fresh perspectives under new leadership.

  Quote:

  “I think you saw the transition from Greenspan to Bernanke to Yellen to Powell. And I think this will be another transition and the committee will adapt… I have every confidence that, that Kevin, if he assumes the job, is going to do his absolute best for the American public like all the rest of the 18 of us do around that table.”
  — Beth Hammack, 03:54

Fed Balance Sheet Debate

• Hammack welcomes discussion about reducing the Fed’s balance sheet and recognizes that debate is healthy for policy.

• Explains the technical decision between an “ample reserves regime” versus a “scarce reserves regime,” and how that would affect the balance sheet makeup (Treasuries vs. repos).

• Notes the importance of adjusting the balance sheet “slowly” and “thoughtfully.”

  Quote:

  “Typically, we don't do things very rapidly. We take our time and we make sure that we're thoughtful. The magnitude of the decisions that we're making are significantly greater than what I did in my previous life. So it's appropriate that we move a lot more slowly.”
  — Beth Hammack, 04:42

  Quote:

  “If the banks demand a certain amount of reserves, we have to supply those reserves. Right now we’re doing that by holding Treasuries on our balance sheet… The form in which we're supplying them could change.”
  — Beth Hammack, 06:02

Business Sentiment in the Cleveland District

• Reports from regional business leaders show a shift: companies are no longer in a holding pattern, but actively hiring and investing.

• Major constraint: difficulty in finding skilled labor, especially tradespeople.

  Quote:

  “Companies are no longer sitting on their hands… If they could find 10 workers, they’d hire 10 workers because they’re seeing the demand and they want to be able to meet that.”
  — Beth Hammack, 07:32

Pricing & Inflationary Pressures

• Persistent pricing pressures in the district, with notable input cost increases from energy and insurance.

• Businesses are facing margin pressure as producer prices rise faster than consumer prices (PPI vs. CPI).

• Many businesses are hesitant to raise prices further, concerned about impacting demand.

  Quote:

  “Producer prices are going up a lot more than the prices to consumers, which means that businesses are buffering that. That's eating into their margins. And one of the questions we continue to ask… is how long can that persist?”
  — Beth Hammack, 08:15

Risks from Geopolitics: War and Oil Prices

• Higher energy prices are influencing consumer outlook and sentiment.

• Hammack considers the “magnitude and persistence” of oil price increases as key factors; sees risks of both inflation and demand drop-off (“two-sided risks”).

• Cautious about the potential for stagflation, but the economy is described as being in "a reasonably good place."

  Quote:

  “There is evidence to show that [energy prices] can impact consumers’ outlook, their spending and their willingness to invest… What I'm going to be looking for is how, how big and for how long.”
  — Beth Hammack, 09:50

Notable Quotes & Moments (with Timestamps)

• Disappointment on Jobs:
  “Certainly this number was a disappointment, mostly because it means that there are more Americans who aren’t working…”
  — Beth Hammack, 01:01

• Policy at ‘Neutral’:
  “I think we’re right around neutral… all of that says to me we are around that neutral level.”
  — Beth Hammack, 02:37

• On Rate Moves:
  “I think we could be on hold for quite some time.”
  — Beth Hammack, 03:23

• On New Leadership:
  “I have every confidence that, that Kevin, if he assumes the job, is going to do his absolute best for the American public...”
  — Beth Hammack, 03:54

• Balance Sheet Strategy:
  “But I'm excited to have these conversations. You know, one of the other things he's talked about is our communication strategy…”
  — Beth Hammack, 04:42

• Business Outlook:
  “Companies are no longer sitting on their hands…they had to keep operating their businesses.”
  — Beth Hammack, 07:32

• On Pricing Pressures:
  “Producer prices are going up a lot more than the prices to consumers, which means that businesses are buffering that...”
  — Beth Hammack, 08:15

• War & Oil Risk:
  “There is evidence to show that [energy prices] can impact consumers’ outlook, their spending and their willingness to invest…”
  — Beth Hammack, 09:50

Timeline of Important Segments

• 00:37–01:38: Labor market, jobs report reaction & inflation challenges
• 02:19–03:23: Monetary policy stance & rate neutrality
• 03:33–04:42: FOMC dynamics and upcoming leadership change
• 04:42–07:14: Balance sheet policy: debates, implications, and mechanics
• 07:14–09:21: Regional business outlook, hiring, and inflation in the Cleveland district
• 09:21–10:33: Geopolitical risks, oil, and outlook for inflation and consumer sentiment

Conclusion

Beth Hammack offers a measured, data-driven perspective on the Fed’s current policy dilemma: balancing inflation control with employment support in a persistently uncertain economic landscape. She underscores stability and continuity in policy, openness to rigorous debate on the Fed’s tools, and an awareness of both domestic and global risks that could shift the outlook. The tone remains pragmatic, cautious, and slightly optimistic, reflective of both the complexity and the resilience within the current economic environment.