Cleveland Fed president calls for rate hike
LATEST Cleveland Fed President Beth Hammack states it is time to raise interest rates
Cleveland Federal Reserve President Beth Hammack stated that it is time to raise interest rates due to inflation remaining above the Fed's 2% target. Hammack noted persistent inflation and a lack of restriction in financial conditions as reasons to act.
NOW PLAYING Fed's Hammack says 'now is the time to act' on raising interest rates
Cleveland Federal Reserve President Beth Hammack stated that "now is the time to act" on raising interest rates, citing persistent inflation running above the Fed's target and a lack of restriction in current financial conditions. She noted that businesses are eager to borrow, indicating that monetary policy is not yet acting as a restraint. Hammack expressed concern that prolonged high inflation risks embedding an inflationary mindset among the public, even if current expectations remain anchored.
Hammack's remarks signal a strong likelihood of interest rate hikes to combat inflation, which could slow economic growth and increase borrowing costs for businesses and consumers.