Hammack Dismisses Rate Cut Talk, Sending Bitcoin to Intraday Low Under $113K

Cleveland Fed’s Hammack Sees No Case for Rate Cut as Bitcoin Falls Below $113K

Cleveland Federal Reserve President Beth Hammack said the central bank has no justification to lower interest rates based on current economic data, dampening hopes for a September cut and triggering market repricing.

“If the meeting were held tomorrow, I wouldn’t support reducing rates,” Hammack said in an interview with Yahoo News from Jackson Hole, where the Kansas City Fed is hosting its annual economic symposium. “Inflation remains too high and has been trending upward throughout the past year.”

She also pointed out that the inflationary effects of recent tariffs are only beginning to surface and will likely be fully reflected in the data next year.

Markets Adjust as Fed Tone Hardens

Hammack’s comments reinforce Fed Chair Jerome Powell’s hawkish stance, despite recent calls for easier policy. The Fed’s July meeting saw two dissenting votes in favor of rate cuts, and President Trump has continued to publicly pressure the central bank to lower rates.

Meanwhile, a growing chorus of former policymakers has advocated for aggressive easing. On Thursday morning, former St. Louis Fed President Jim Bullard said he would support cutting rates by a full percentage point from current levels.

Bitcoin Drops as Rate Cut Odds Decline

Bitcoin, which recently surged to an all-time high above $124,000 on expectations of imminent easing, has since dropped nearly 10%. At last check, it was trading near $112,800 — its lowest level of the session.

According to CME FedWatch data, the probability of a September rate cut has fallen from 99% a week ago to 71%, following Hammack’s comments and the broader shift in Fed messaging.

All Eyes on Powell’s Jackson Hole Address

Attention now turns to Fed Chair Jerome Powell’s keynote address on Friday morning. While markets previously priced in a dovish tilt, expectations have shifted. Powell is widely anticipated to maintain a cautious tone, emphasizing that inflation remains uncomfortably high and that the Fed will remain data-dependent before considering any policy adjustment.