Fed’s Hammack calls for higher rates as inflation pressures broaden
Cleveland Federal Reserve (Fed) President Beth Hammack said Monday that interest rates need to be higher, that inflation remains “too high”, and that more economic tightness is needed.
Cleveland Fed President Beth Hammack has advocated for higher interest rates, citing that inflation remains "too high" and the need for greater economic tightness. She emphasized that inflationary pressures have expanded, financial conditions are currently neutral, and reaching the Fed's 2% inflation goal will take time. Hammack suggested that the central bank prefers making smaller adjustments to the policy rate but wants to act relatively quickly.
She noted that strong demand, not just energy costs, is contributing to price pressures. Hammack acknowledged the importance of communicating the Fed's decisions clearly to businesses and households to help them plan effectively.
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