{"id":52210,"date":"2025-08-22T11:38:47","date_gmt":"2025-08-22T15:38:47","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/"},"modified":"2025-08-22T11:38:47","modified_gmt":"2025-08-22T15:38:47","slug":"feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/","title":{"rendered":"Fed&#8217;s Hammack Cautions Against Early Rate Cuts Amid Inflation Concerns; Global Markets See Mixed Activity"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/#Key_Takeaways\" >Key Takeaways<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/#Federal_Reserve_Stance_on_Interest_Rates_and_Inflation\" >Federal Reserve Stance on Interest Rates and Inflation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/#Supreme_Court_Decision_on_DEI_Grants\" >Supreme Court Decision on DEI Grants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/#Global_Market_Movements\" >Global Market Movements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/#Cryptocurrency_Volatility\" >Cryptocurrency Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-cautions-against-early-rate-cuts-amid-inflation-concerns-global-markets-see-mixed-activity\/52210\/#Corporate_and_Industry_News\" >Corporate and Industry News<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Cleveland Fed President Beth Hammack warned against premature interest rate cuts, citing persistent inflation and the need for the Federal Reserve to remain &quot;modestly restrictive&quot; to achieve its 2% target.<\/strong><\/li>\n<li><strong>The U.S. Supreme Court greenlighted the <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> administration&#39;s termination of approximately $783 million in NIH grants tied to Diversity, Equity, and Inclusion (DEI) initiatives.<\/strong><\/li>\n<li><strong>European stock markets showed modest gains, with the FTSE 100 up 0.2%, DAX up 0.32%, CAC 40 up 0.5%, and IBEX up 0.7%, while the Euro strengthened 1% against the USD to 1.1728, reaching its highest level since August 1.<\/strong><\/li>\n<li><strong>Crypto markets experienced significant volatility, with $250 million in shorts liquidated in just four hours amidst broader market swings.<\/strong><\/li>\n<li><strong>CSX (<a href=\"\/stock\/CSX\">CSX<\/a>) and BNSF announced new intermodal rail services, including a route connecting Phoenix and Atlanta, aiming to shift over-the-road freight to rail.<\/strong><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Federal_Reserve_Stance_on_Interest_Rates_and_Inflation\"><\/span>Federal Reserve Stance on Interest Rates and Inflation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cleveland Federal Reserve President Beth Hammack issued a cautionary statement regarding the Federal Reserve&#39;s approach to interest rate cuts, emphasizing that the central bank should be careful about reducing rates too soon. Hammack highlighted that the Fed is still falling short of its 2% inflation target and needs to maintain a &quot;modestly restrictive&quot; policy stance to achieve its goals. She stressed the importance of focusing on economic effects rather than market fluctuations when making policy decisions. Hammack also noted that the full impact of tariffs on inflation remains unclear and may not be evident until early next year, adding uncertainty to future policy adjustments.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Supreme_Court_Decision_on_DEI_Grants\"><\/span>Supreme Court Decision on DEI Grants<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In a narrow 5-4 decision, the U.S. Supreme Court cleared the way for the <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> administration to terminate approximately <strong>$783 million<\/strong> in National Institutes of Health (NIH) grants tied to Diversity, Equity, and Inclusion (DEI) initiatives. This ruling allows the administration to proceed with its efforts to cut federal funding for DEI-related programs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Global_Market_Movements\"><\/span>Global Market Movements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>European stock markets generally saw positive movement, with Britain&#39;s FTSE 100 (<a href=\"\/stock\/UKX\">UKX<\/a>) rising <strong>0.2%<\/strong>, Germany&#39;s DAX (<a href=\"\/stock\/DAX\">DAX<\/a>) up <strong>0.32%<\/strong>, France&#39;s CAC 40 (<a href=\"\/stock\/CAC\">CAC<\/a>) gaining <strong>0.5%<\/strong>, and Spain&#39;s IBEX (<a href=\"\/stock\/IBEX\">IBEX<\/a>) increasing <strong>0.7%<\/strong>. Meanwhile, the Euro (<a href=\"\/currency\/EUR\">EUR<\/a>) strengthened significantly, rising <strong>1%<\/strong> to <strong>1.1728<\/strong> against the U.S. Dollar (<a href=\"\/currency\/USD\">USD<\/a>), reaching its highest level since August 1. In the U.S., the Treasury 5-Year Yield dropped <strong>0.10 percentage points<\/strong> to <strong>3.75%<\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cryptocurrency_Volatility\"><\/span>Cryptocurrency Volatility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The cryptocurrency market experienced a period of significant volatility, with <strong>$250 million<\/strong> in crypto shorts liquidated in just four hours. This rapid liquidation highlights the high leverage and exposure within the crypto space amidst ongoing price swings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Corporate_and_Industry_News\"><\/span>Corporate and Industry News<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>CSX (<a href=\"\/stock\/CSX\">CSX<\/a>)<\/strong> and <strong>BNSF<\/strong> announced new intermodal rail services designed to provide seamless coast-to-coast transportation. A key new service connects Phoenix and Atlanta, aiming to replace over-the-road freight with rail transport.<\/p>\n<p>Chilean state miner <strong>Codelco<\/strong> reduced its 2025 copper production forecast to between <strong>1.34 million and 1.37 million tonnes<\/strong>, down from previous estimates. This revision follows an accident at its El Teniente mine.<\/p>\n<p>In the technology sector, <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> launched its Spectrum-XGS Ethernet, designed to link distributed data centers into large-scale AI super-complexes. This technology aims to enable multiple data centers to operate as a single AI super-factory.<\/p>\n<p>Shares of <strong>Moderna (<a href=\"\/stock\/MRNA\">MRNA<\/a>)<\/strong> rose <strong>4.7%<\/strong> and <strong>Novavax (<a href=\"\/stock\/NVAX\">NVAX<\/a>)<\/strong> increased <strong>3.4%<\/strong> during trading. Separately, the TikTok website resumed access in India for some users after a five-year hiatus.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Cleveland Fed President Beth Hammack warned against premature interest rate cuts, citing persistent inflation and the need for 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