Bitcoin Falls Under $113K as Fed’s Hammack Shuts Down Rate Cut Hopes

Hammack Rejects Rate Cut Case as Bitcoin Slides Under $113K

Cleveland Fed President Beth Hammack stated that current economic indicators do not warrant a reduction in interest rates, challenging market expectations ahead of this week’s Jackson Hole symposium.

“If the meeting were tomorrow, I wouldn’t support a rate cut,” Hammack told Yahoo News in Wyoming. “Inflation remains elevated and has been moving higher over the past year.” She added that recent tariff-related inflation is only starting to appear in the data, with more to come in 2027.

Markets Reprice as Fed Signals Hold

Hammack’s remarks align with Fed Chair Jerome Powell’s hawkish tone, despite pressure from political leaders and recent dissent within the FOMC. Two members voted for cuts at the last meeting, and President Trump has repeatedly called for easing.

Meanwhile, former Fed officials are increasingly vocal about the need for lower rates. On Thursday morning, former St. Louis Fed President Jim Bullard argued for a 100-basis-point cut, citing a slowdown in core economic activity.

Bitcoin Falls on Cooling Cut Odds

Bitcoin has dropped sharply in response to the hawkish messaging. After touching a record high above $124,000 last week on near-certain cut expectations, the asset has since fallen nearly 10%, trading around $112,800.

Rate cut odds have also shifted. The probability of a September cut has dropped to 71%, down from 99% a week ago, according to CME FedWatch.

Powell Speech in Focus

All attention now turns to Fed Chair Jerome Powell’s Friday address at Jackson Hole. While markets once hoped for a dovish pivot, Powell is widely expected to reiterate that inflation remains sticky and that any policy shift will depend on incoming data.