Fed's Hammack: Time for Fed to act with rate hikes
In an interview with Bloomberg on Friday, Cleveland Federal Reserve (Fed) President Beth Hammack said that it is time for the Fed to act with rate hikes, arguing that waiting will create pain.
In an interview with Bloomberg, Cleveland Federal Reserve President Beth Hammack stated that it is time for the Fed to act with rate hikes, as waiting will cause pain. While inflation is projected to end the year at around 3%, falling short of the target, there are no signs of restrictive financial conditions. Communicating Fed issues to the public is a crucial part of Hammack's role.
Hammack emphasized that markets are complementary to the Fed but not substitutes. The Fed's credibility hinges on fulfilling its dual mandate of price stability and full employment. The absence of economic restriction and the use of interest rates as the most easily understood tool suggest a hawkish stance on policy action.
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Also reported by 4 other outlets
- Fed Chair Warsh signals rate hikes may be needed with inflation still elevated winnipegfreepress.com
- Rate hikes may be coming amid inflation, new U.S. Fed chief signals globalnews.ca
- Fed Chair Warsh signals rate hikes may be needed with inflation still elevated abcnews.com
- High inflation could lead to rate hikes: Fed chief news.rthk.hk
