{"id":55675,"date":"2025-11-06T14:08:28","date_gmt":"2025-11-06T18:08:28","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/"},"modified":"2025-11-06T14:08:28","modified_gmt":"2025-11-06T18:08:28","slug":"feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/","title":{"rendered":"Fed&#8217;s Hammack Warns of Bifurcated Economy and Persistent Inflation; ConocoPhillips Lowers Break-Even"},"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-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/#Feds_Hammack_on_Economic_Disparity_and_Monetary_Policy_Challenges\" >Fed&#39;s Hammack on Economic Disparity and Monetary Policy Challenges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/#AI_as_a_Significant_Economic_Shift\" >AI as a Significant Economic Shift<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/#Stablecoins_A_Promising_Innovation\" >Stablecoins: A Promising Innovation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/#ConocoPhillipss_Strategic_Outlook\" >ConocoPhillips&#39;s Strategic Outlook<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/feds-hammack-warns-of-bifurcated-economy-and-persistent-inflation-conocophillips-lowers-break-even\/55675\/#Rising_Mortgage_Rates_and_Trumps_Healthcare_Announcements\" >Rising Mortgage Rates and Trump&#39;s Healthcare Announcements<\/a><\/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>Federal Reserve&#39;s Beth Hammack<\/strong> expressed significant concern over a <em>bifurcated U.S. economy<\/em> where lower-income households struggle while wealthier Americans drive consumption, noting monetary policy&#39;s limitations in addressing this divide.<\/li>\n<li><strong>Inflation remains &quot;too high,&quot;<\/strong> according to Hammack, who stated the Fed&#39;s biggest error has been on the inflation side, and it could take <em>a couple of years<\/em> to return to the 2% target. She also opposed recent rate cuts, viewing current policy as &quot;barely restrictive, if at all.&quot;<\/li>\n<li><strong>ConocoPhillips (<a href=\"\/stock\/COP\">COP<\/a>)<\/strong> announced its total company capital break-even is declining, now in the <em>mid-$40s per barrel<\/em>, and plans a steady drilling program with approximately <strong>24 rigs<\/strong> in the Lower 48 states.<\/li>\n<li>The <strong>average US 30-year fixed mortgage rate<\/strong> rose to <strong>6.22%<\/strong> in the week of November 6th, up from 6.17% previously, according to Freddie Mac.<\/li>\n<li>Former President <strong>Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> announced a deal with <strong>Eli Lilly (<a href=\"\/stock\/LLY\">LLY<\/a>)<\/strong> and <strong>Novo Nordisk (<a href=\"\/stock\/NVO\">NVO<\/a>)<\/strong> for a <em>three-year tariff exemption<\/em> in exchange for significant discounts on commonly used medicines, claiming Americans have a right to the lowest global prices.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Feds_Hammack_on_Economic_Disparity_and_Monetary_Policy_Challenges\"><\/span>Fed&#39;s Hammack on Economic Disparity and Monetary Policy Challenges<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cleveland Federal Reserve President Beth Hammack highlighted a significant challenge facing the U.S. economy: a <em>bifurcated performance<\/em> where lower-income households are struggling, while consumption is largely driven by wealthier Americans. Hammack emphasized that monetary policy is a &quot;blunt&quot; tool and cannot easily address this economic split. She regularly hears about this divided economy, noting the difficulties faced by those with lower incomes.<\/p>\n<p>Hammack described the current period as a &quot;challenging time for monetary policy making.&quot; She expressed concern about current policies due to persistent inflation, stating that inflation is &quot;too high&quot; and goes beyond just tariff pressure. In her view, the Federal Reserve&#39;s biggest error has been on the inflation side, rather than employment. She projected it would take &quot;a couple of years&quot; to return to the Fed&#39;s 2% inflation target. Hammack also indicated that some money market volatility is acceptable and supports an ample reserves framework.<\/p>\n<p>Regarding interest rates, Hammack believes the Fed has done an excellent job managing the federal funds rate, though she noted it is a small market. She suggested that while it is good for the Fed to debate its interest rate target, changing it would likely not have a broader policy impact given the &quot;increasingly narrow&quot; Fed funds market. Hammack opposed the recent rate cut, stating that monetary policy is &quot;barely restrictive, if at all,&quot; and it is &quot;not obvious&quot; that further easing is needed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AI_as_a_Significant_Economic_Shift\"><\/span>AI as a Significant Economic Shift<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Hammack also commented on the rise of artificial intelligence (AI), calling it a &quot;significant economic shift&quot; that does not respond well to traditional monetary policy adjustments. She likened the current AI boom to the rise of the internet, suggesting its transformative potential.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Stablecoins_A_Promising_Innovation\"><\/span>Stablecoins: A Promising Innovation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the realm of digital finance, Fed&#39;s Hammack views <a href=\"https:\/\/stockmarketwatch.com\/market-trends\/stablecoins\/2025-report\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Stablecoins\">stablecoins<\/a> as a &quot;promising innovation&quot; and an &quot;exciting new technology.&quot;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ConocoPhillipss_Strategic_Outlook\"><\/span>ConocoPhillips&#39;s Strategic Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Energy giant <strong>ConocoPhillips (<a href=\"\/stock\/COP\">COP<\/a>)<\/strong> announced that its total company capital break-even is declining and is currently in the <em>mid-$40s per barrel<\/em>. The company plans to maintain a steady drilling program, operating approximately <strong>24 rigs<\/strong> across the Lower 48 states.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Rising_Mortgage_Rates_and_Trumps_Healthcare_Announcements\"><\/span>Rising Mortgage Rates and Trump&#39;s Healthcare Announcements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>average US 30-year fixed mortgage rate<\/strong> increased to <strong>6.22%<\/strong> in the week of November 6th, up from 6.17% in the previous week, according to Freddie Mac.<\/p>\n<p>Separately, former President <strong>Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a><\/strong> announced that many commonly used medicines would be sold at a <strong>60% discount<\/strong>. He asserted that Americans must have access to the lowest prices for medicines worldwide, claiming this as a right. Furthermore, a U.S. official announced a <em>three-year tariff exemption<\/em> for pharmaceutical companies <strong>Eli Lilly (<a href=\"\/stock\/LLY\">LLY<\/a>)<\/strong> and <strong>Novo Nordisk (<a href=\"\/stock\/NVO\">NVO<\/a>)<\/strong>. This deal was confirmed by the Trump administration, linking tariff relief to lower prices for their blockbuster weight-loss drugs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Federal Reserve&#39;s Beth Hammack expressed significant concern over a bifurcated U.S. economy where lower-income households struggle while wealthier 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