Fed's Hammack says 'now is the time to act' on raising interest rates

Live updates

1. 16d ago

   Fed Chair Kevin Warsh and officials signal rate hikes at Jackson Hole

   Federal Reserve Chair Kevin Warsh and several Fed officials have signaled a need for interest rate hikes during the annual Jackson Hole symposium. Warsh stated that inflation tops the 2% target and current policy is not restrictive, suggesting there is still work to do on inflation. Other officials, including Cleveland Fed President Hammack and Kansas City Fed President Schmid, also warned that inflation remains sticky or too hot, with Hammack explicitly stating that now is the time to act. These hawkish signals have sparked market bets for a rate increase next month.

   Why it matters

   The Jackson Hole symposium is a key annual event where central bank leaders signal future monetary policy. Current volatility in bond yields has heightened market sensitivity to the Fed's stance on inflation. The shift toward a more hawkish tone follows concerns that current rates are too accommodative.

   What is confirmed

   • Fed Chair Kevin Warsh stated that current policy is not restrictive and there is work to do on inflation.
   • Fed Chair Kevin Warsh signaled rate hikes as inflation tops the 2% target.
   • Fed President Hammack stated that now is the time to act on raising interest rates.
   • Kansas City Fed President Schmid described inflation as stubborn and sticky.
   • Kansas City Fed President Schmid stated that the policy rate is not restrictive.

   Still unconfirmed

   • Chicago Fed President Austan Goolsbee said US rates are not historically high.
   • The job market is broadly in balance according to Fed President Hammack.

   What to watch next

   • The Federal Reserve's official interest rate decision next month.
   • Further data on inflation targets and labor market stability.
   Sources used for this update (24)

   1. CNBC — Kansas City Fed's Schmid says inflation 'stubborn' and 'sticky,' policy rate not restrictive
   2. Bloomberg.com — Fed’s Schmid Says Policy Isn’t in Restrictive Territory
   3. Yahoo Finance — Kansas City Fed’s Schmid says inflation too hot, rates too accommodative on eve of Jackson Hole
   4. CNBC — Fed's Hammack says 'now is the time to act' on raising interest rates
   5. Investing.com India — Fed’s Hammack calls for rate hikes, second Fed official today
   6. WTVB — As Jackson Hole conference kicks off, two Fed officials warn about inflation
   7. TradingView — Fed's Hammack reiterates it's time for central bank to raise rates - CNBC
   8. Reuters — As Jackson Hole conference kicks off, three Fed officials warn about inflation
   9. qz.com — Fed officials warn on inflation at Jackson Hole 2026
   10. Newsquawk — Fed's Hammack (2026 voter, hawk) says job market is broadly in balance; latest inflation data is in line with expectations
   11. Bloomberg Law News — Fed Officials Remain Divided on Inflation Ahead of Warsh Speech
   12. Kathleen Hays Presents: Central Bank Central — K.C. Fed’s Schmid Favors and Has Been Favoring Rate Hike, Data to Determine Policy Now
   confidence 90%