Federal Reserve Bank of Cleveland President Beth Hammack emphasized the need for restrictive interest rates to curb inflation and meet the central bank’s 2% target. Speaking at an event in Zurich on Thursday, Hammack argued that more frequent, smaller rate adjustments could help prevent policy from falling behind inflationary pressures.
Hammack stated, "I expect that monetary policy will need to move to a restrictive stance to bring inflation back to 2% in a timely manner." She highlighted the importance of proactive measures to avoid prolonged inflationary periods, suggesting that smaller, more frequent rate changes could be more effective than larger, infrequent adjustments.
The remarks come as central banks worldwide grapple with balancing economic growth and inflation control. Hammack’s preference for a gradual approach reflects a cautious strategy aimed at stabilizing prices without stifling economic activity.