Cleveland Fed's Hammack Signals Hawkish Pivot Amid Stubborn Inflation

Cleveland Federal Reserve President Beth Hammack said that the current monetary policy stance is not restrictive, despite inflation remaining above 3%. According to her LinkedIn article, local contacts are calling for the Fed to raise rates to bring inflation under control.

Hammack stated that both hard data and anecdotal reports indicate that conditions warrant tighter policy. She noted that inflation is still hovering around 3.2%, while the labor market is stable and close to her estimate of maximum employment.

The prolonged period of above-target inflation makes it increasingly difficult for the Fed to return it to its objective, Hammack warned.