Fed’s Hammack says policy is not restrictive enough

Cleveland Federal Reserve President Beth Hammack stated on Friday that the current monetary policy stance is not restrictive enough. She emphasized that inflation remains too high, currently standing above 3 percent. Hammack noted that anecdotal evidence and hard data indicate that the Federal Reserve needs to hike interest rates to control inflation.

She pointed out that the labor market is stable and near maximum employment levels. Hammack reiterated that the situation necessitates immediate action, as the longer inflation remains above the 2% target, the more challenging it becomes to bring it back down.