Hammack: High Inflation Not in Conflict with Fed Mandate

Cleveland Federal Reserve President Beth Hammack said that despite high inflation complicating economic planning, she doesn't see current policy as restraining the economy. She noted that 'high inflation has real costs and pressures wages,' but emphasized that inflation expectations are 'well anchored.'

Hammack stated that persistently high inflation is not in conflict with the Fed's dual mandate of achieving price stability and fostering full employment. The Federal Reserve has two main goals: to maintain low and stable inflation, and to promote maximum employment.

The President also mentioned that good economic outlook is pressuring up bond yields, but noted that some of what the bond market is doing is in reaction to the Fed and government policy. She added that AI investment demand is competing for investors in the bond market.