Cleveland Fed's Hammack Says Inflation Risks Still High, Backs Restrictive Policy
Summary
- Beth Hammack, president of the Federal Reserve Bank of Cleveland, said inflation risks remain high and restrictive monetary policy should stay in place until there is clear progress on price stability.
- Hammack said the biggest risk is that elevated inflation could persist and become entrenched in public expectations.
- She said continued economic growth, a stable labor market, and strong demand and capital spending could keep price pressures high, and stressed that the Fed should maintain a restrictive policy stance until there is clear progress in lowering inflation.
Forecast Trend Report by Period
Beth Hammack, president of the Federal Reserve Bank of Cleveland, said inflation risks remain high and 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 inflation staying elevated and becoming entrenched in public expectations.
She said continued economic growth, a stable labor market, and strong demand and capital spending could keep price pressures high.
Hammack added that the Fed should maintain a restrictive policy stance until there is clear evidence that inflation is coming down.
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