caution
Fed’s Hammack warns further rate cuts could destabilize markets

Cleveland Fed President Beth Hammack cautioned that more interest rate cuts risk **financial stability**, citing easy credit, surging asset prices and rising leverage in non-bank sectors. She argued that lowering borrowing costs further could fuel risky lending and distort pricing dynamics, potentially amplifying downside risk in a future downturn.
Hammack also said that while a looser policy may support jobs, it could worsen inflation and weaken the resilience of the financial system.
Tags:
- economy
- global policy
Reuters• By Harsh Ranjan
Explore:Mutual Fund Screening
caution
Fed’s Hammack warns further rate cuts could destabilize markets

Cleveland Fed President Beth Hammack cautioned that more interest rate cuts risk **financial stability**, citing easy credit, surging asset prices and rising leverage in non-bank sectors. She argued that lowering borrowing costs further could fuel risky lending and distort pricing dynamics, potentially amplifying downside risk in a future downturn.
Hammack also said that while a looser policy may support jobs, it could worsen inflation and weaken the resilience of the financial system.
Tags:
- economy
- global policy
Reuters• By Harsh Ranjan
Explore:Mutual Fund Screening
1 min read
71 words

Fed’s Hammack warns continued rate cuts could encourage risky lending, raising systemic financial stability risks.
Cleveland Fed President Beth Hammack cautioned that more interest rate cuts risk **financial stability**, citing easy credit, surging asset prices and rising leverage in non-bank sectors. She argued that lowering borrowing costs further could fuel risky lending and distort pricing dynamics, potentially amplifying downside risk in a future downturn.
Hammack also said that while a looser policy may support jobs, it could worsen inflation and weaken the resilience of the financial system.

Cleveland Fed President Beth Hammack cautioned that more interest rate cuts risk **financial stability**, citing easy credit, surging asset prices and rising leverage in non-bank sectors. She argued that lowering borrowing costs further could fuel risky lending and distort pricing dynamics, potentially amplifying downside risk in a future downturn.
Hammack also said that while a looser policy may support jobs, it could worsen inflation and weaken the resilience of the financial system.
Tags:
- economy
- global policy
- economy
- global policy
- us
- fed
- interest_rates