Hammack Sounds Hawkish Alarm as Inflation Remains Above 3%

Cleveland Federal Reserve President Beth Hammack has signaled that monetary policy is not restrictive enough to curb inflation. In a LinkedIn article, she stated that inflation remains above 3% and conditions warrant tighter policy. According to Hammack, local contacts are calling for the Fed to raise rates in order to bring inflation under control.

Hammack noted that both hard data and anecdotal reports point to the same direction, warning that the longer inflation stays above the Fed's objective, the more difficult it becomes to return it to target. The labour market is stable and close to her estimate of maximum employment.

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