Cleveland Federal Reserve Bank President Beth Hammack reiterated that interest rates are likely to remain unchanged for a considerable period, while also suggesting that officials should prepare for other potential outcomes.

"In my baseline expectation, I believe policy should remain steady for a considerable time as we see evidence of inflation moderating and the labor market stabilizing further," Hammack said on Friday in prepared remarks for a conference in New York. "However, it is also easy to envision other scenarios, so I see two-way risks for interest rates."

With less than two weeks until the Fed’s next policy meeting, officials’ outlook on the economy has become more uncertain due to U.S. strikes on Iran, a sharp rise in oil prices, and an unexpectedly weak jobs report.

The meeting is scheduled for March 17–18, and Fed officials will enter a blackout period starting at midnight. Minutes from the January meeting indicated that several officials suggested the central bank may need to raise borrowing costs if inflation remains persistently high.

Hammack, who has long been cautious about stubbornly high inflation, also noted earlier this week that interest rates could remain unchanged for an extended period.

As a voting member on monetary policy this year, Hammack emphasized in her Friday speech the importance of central bank independence. "The Fed’s independence, along with its accountability to Congress, is crucial for maintaining global confidence in our commitment to achieving the 2% inflation target," she said.

Hammack’s remarks primarily focused on the U.S. dollar. She stated that while she currently sees no signs of change in the dollar’s dominant status, "we should not take for granted the conditions that have made the dollar the world’s leading currency."