Hammack Warns of Lost Confidence on Inflation Tackle

Cleveland Federal Reserve President Beth Hammack spoke at the Jackson Hole Symposium, expressing her hawkish views on inflation. She stated that 'now' is the time to tackle persistent inflation and that monetary policy is not restrictive for the economy in the United States. Hammack emphasized that the recent inflation figure was as expected and that the main worry is that the public will lose confidence in the Federal Reserve's ability to return inflation to its 2% target.

Hammack's comments come amid concerns about the impact of inflation on living expenses, with contacts expressing concern about rising costs. She noted that she does not see Fed policy providing restriction for the economy and that her neutral rate projection is on the upper end of the committee range.