Cleveland Fed President Beth Hammack asserted on September 29, 2025, that U.S. inflation may not reach the Federal Reserve's 2% target until 2028, during a CNBC interview in Frankfurt.
Hammack's inflation concerns suggest maintaining a restrictive monetary policy, influencing market expectations and potentially impacting cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
U.S. Inflation Expected to Stay Elevated Until 2028
Beth Hammack expressed concerns over inflation potentially staying above the Federal Reserve’s 2% target. This announcement came during her CNBC interview in Frankfurt. Hammack highlighted that the inflation rate has not reached its target level for over four and a half years, suggesting it might remain elevated until the end of 2027.
This outlook affects Federal Reserve policy, as Hammack opposed interest rate cuts due to inflationary pressures. She underscored that tariff impacts on prices could extend beyond a "one-off" shock, mandating a cautious policy approach. The Fed maintains a restrictive monetary stance, keeping rates high to counter inflation. As Hammack stated, "With the persistent service-sector inflation and the risk that tariff effects on prices are not merely transitory, I believe it is unwise to pursue a rate cut at this time."
Market participants have shown increased caution due to Hammack’s remarks. Although her statement didn't result in immediate cryptocurrency market moves, risk assets like BTC and ETH are sensitive to such policy stances. The expectation of prolonged inflation could influence broader market and fiscal strategies.
Historical Fed Policies and Cryptocurrency Market Trends
Did you know? Historically, periods of hawkish Fed policies, such as in 2018 and 2022, have coincided with liquidity retrenchment in cryptocurrency markets, leading to corrective trends for assets like BTC and ETH.
Bitcoin (BTC) currently trades at $112,151.82 with a market cap of $2.23 trillion and a 24‑hour volume of $46.28 billion, reflecting a 2.50 % increase over the last day, according to CoinMarketCap. Its price has fluctuated, showing a decrease over seven days but growth in the last month.
Coincu analysts indicate that sustained inflation could impact interest rates, influencing both cryptocurrency valuations and strategy. Historical monetary tightening has shown that digital assets often face downward price pressures, affected by changing liquidity and borrowing costs.
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