Cleveland Fed’s Hammack Says Inflation Risks Still High, Calls for Restrictive Policy
JH Kim
Summary
- Beth Hammack, president of the Federal Reserve Bank of Cleveland, said inflation risks remain high and that restrictive monetary policy should be maintained.
- Walter Bloomberg reported that Hammack sees the biggest risk as elevated inflation persisting and becoming embedded in public expectations.
- She said strong demand and capital spending could keep price pressures elevated, and stressed that the Fed should maintain its restrictive policy stance until there is clear progress in bringing inflation down.
Forecast Trend Report by Period
Beth Hammack, president of the Federal Reserve Bank of Cleveland, said inflation risks remain high and that the Federal Reserve should keep monetary policy restrictive until there is clear progress on price stability.
Walter Bloomberg reported on September 25 that Hammack sees the biggest risk as elevated inflation persisting and becoming embedded in public expectations.
She said strong demand and capital spending could keep price pressures elevated even as economic growth continues and the labor market remains stable.
Hammack stressed that the Fed should maintain a restrictive policy stance until there is clear evidence that inflation is moving lower.
JH Kim
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