Fed's Hammack backs extended rate pause, cites Iran war uncertainty

Investing.com -- Federal Reserve Bank of Cleveland President Beth Hammack said Wednesday it was too early to assess the economic impact of the Iran war and supported maintaining interest rates at current levels for an extended period.

"We're in a good spot from a policy perspective; I think we could be on hold for quite some time," Hammack said in an interview with the New York Times published Wednesday.

Hammack emphasized the need to balance inflation control with labor market conditions. "It's important to make sure that we're maintaining policy at a level where we can drive inflation back down to target while balancing any potential softness in the labor market," she said.

The Cleveland Fed president expressed caution about inflation and called for an extended rate pause, according to the New York Times interview.

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