Cleveland Fed President Hamek made two statements in favor of raising interest rates within a week, once again taking a "hawkish" stance.

Hemak, president of the Federal Reserve Bank of Cleveland, stated that with the labor market showing continued strength and employment approaching full employment, the Fed may soon need to consider further rate hikes. Hemak posted on social media on Friday, stating that while she does not overinterpret individual economic data, the latest employment report once again proves that the labor market in the United States is overall relatively balanced. Hemak said, "The unemployment rate staying at 4.3% roughly aligns with my definition of full employment." Data released by the US Department of Labor on that day showed that non-farm employment increased by 172,000 in May, well above market expectations and marking the strongest three-month average increase in over two years. Meanwhile, the unemployment rate remained at 4.3% for several months, indicating that the labor market remains resilient. Hemak pointed out that given the current economic uncertainties, maintaining interest rates unchanged is a reasonable choice, but if the current trend continues, the Fed may need to take action soon. She stated, "At present, considering the uncertainties facing the economic outlook, keeping rates stable is reasonable. But if the current trend continues, it may soon be appropriate to take action." This statement is in line with her views expressed on June 2, when she said at the City Club of Cleveland that if the current high inflation pressure continues to intensify, the Fed may need to resume rate hikes soon. The strong employment data further reinforce market expectations that the Fed will resume rate hikes before the end of the year. Rate futures markets show that investors generally expect the Fed to raise rates by 25 basis points at the December meeting. However, the market still expects the Fed to keep the benchmark rate unchanged at the monetary policy meeting on June 16-17. Nevertheless, several analysts believe that policymakers may remove language from the post-meeting statement suggesting that "the next move is more likely to be a rate cut," thus sending a more hawkish policy signal. It is worth noting that this meeting will be the first policy meeting for newly appointed Fed Chairman Powell, and the market will closely watch his statements on inflation, employment, and the future rate path.