Cleveland Fed Chief Pushes for Rate Hike Amid Persistent Inflation Fears

Cleveland Federal Reserve President Beth Hammack has called for higher interest rates to combat persistent inflation. Speaking at the Fed's annual symposium in Jackson Hole, Wyoming, Hammack cited data showing inflation running at around 3% on an annualised basis as a cause for concern.

Despite recent monthly figures indicating a slower pace of price increases, Hammack argued that the Federal Reserve must tighten monetary policy without further delay. 'I don't want to prejudge anything,' she told CNBC in a live interview from the Wyoming gathering. 'But I believe now is the time to act.'

Hammack was one of three dissenters at the July Federal Open Market Committee meeting, where the majority voted to hold the policy rate in a range of 3.5% to 3.75%. She and two fellow dissenters had favoured a quarter percentage point hike at that meeting.

Hammack warned that prolonged inflation above the Fed's objective risks embedding an inflationary mindset among the wider public and businesses alike. 'The longer inflation stays above our objective, the harder it will be for us to bring it back down,' she said.