Hammack Sees 'Time to Act' on Interest Rates Amid Ongoing Inflation

Cleveland Federal Reserve President Beth Hammack believes the time has come to take action on raising interest rates. Speaking at the Fed's annual symposium in Jackson Hole, Wyoming, she noted that recent inflation data shows the central bank is still too far from its goal of keeping prices stable.

Hammack pointed out that despite monthly rates of price increases slowing over the past few months, inflation remains around 3% on an annualized basis. She emphasized the need for tighter monetary policy to combat ongoing inflationary pressures.

The Fed policymaker expressed concerns about the long-term effects of missing its inflation target, warning that 'the longer inflation stays above our objective, the harder it will be for us to bring it back down, and the more pain that individuals and businesses are going to be experiencing.'

Hammack's comments align with her previous dissenting views on monetary policy. At the July meeting of the Federal Open Market Committee, she was one of three members who voted in favor of a quarter percentage point hike in interest rates.