Federal Reserve Bank of Cleveland President and CEO Beth M. Hammack delivered remarks at the Economic Club of New York on November 6, 2025, addressing the challenges of fulfilling the Federal Reserve’s dual mandate: achieving maximum employment and maintaining price stability.
During her speech, Hammack likened the balancing act required by monetary policy to walking a tightrope. She stated, “I see monetary policy as ‘barely restrictive, if at all, and it is not obvious to me that monetary policy should do more at this time.’”
Hammack outlined three primary considerations informing her estimate of r-star—the neutral interest rate that neither stimulates nor restrains economic growth. These factors include recent economic performance, findings from economic modeling, and signals from financial markets. She noted, “My growing sense is that the period of ultra-low rates and low r-star we experienced following the GFC—which was coupled with household deleveraging and regulatory tightening—was an anomaly rather than a new normal.”
The Federal Reserve Bank of Cleveland is one of twelve regional Reserve Banks within the Federal Reserve System. The bank contributes to national monetary policy decisions, supervises banking organizations in its district, provides payment services to financial institutions and the US Treasury, and engages in research and outreach activities supporting communities in Ohio, western Pennsylvania, eastern Kentucky, and northern West Virginia.
The institution also produces indicators and datasets about inflation, employment trends, and risks to the financial system for public use. Its educational resources aim to improve understanding of economic issues among policymakers, researchers, students, and community members.
For further information or inquiries regarding President Hammack’s remarks or other activities of the Cleveland Fed, Doug Campbell can be contacted at doug.campbell@clev.frb.org or 513.218.1892.
