Cleveland Fed President Beth Hammack advocates for smaller and faster interest rate adjustments to manage inflation, aiming to return it to the 2% target. Hammack, a voting member of the FOMC, noted that inflation has remained above this target for over five years. She warned that persistent price pressures could lead to an entrenched inflationary mindset if not addressed promptly.
Current economic data highlights the scale of the challenge, with the personal consumption expenditures price index rising 3.4% annually in August, while core PCE reached 3%. The Federal Reserve previously raised rates in September, marking the first increase in three years. Hammack also highlighted the potential impact of artificial intelligence demand on ongoing price pressures.
Market expectations for the next rate hike are currently centered on the December 9 meeting. CME FedWatch data indicates an 84.7% probability of a rate move, with 69% of that probability attributed to a 25 basis point increase. Traders also assign a 15.7% chance to a larger 50 basis point hike. Meanwhile, the US Dollar Index has reached an 18-month high.
Bitcoin is currently trading at $81 661, marking a 2.56% decline over the last 24 hours. The asset remains approximately 35% below its all-time high of $126 080, recorded on October 6, 2025. Data from CoinGlass shows that Bitcoin has declined 1.89% during October, a month that has historically been one of the strongest for the cryptocurrency.
