Fed Cleveland President Hammack urges continued restrictive monetary policy

  • Beth Hammack urged the Federal Reserve to maintain restrictive monetary policy until inflation shows clear progress lower.
  • Beth Hammack identified persistent elevated inflation becoming embedded in public expectations as the biggest risk.
  • Walter Bloomberg reported Hammack's comments on September 25 as growth continued and the labor market remained stable.

Beth Hammack, president of the Federal Reserve Bank of Cleveland, said inflation risks remain high and that the Federal Reserve should maintain restrictive monetary policy, meaning borrowing conditions remain tight, until there is clear progress toward price stability. Hammack identified the persistence of elevated inflation and its potential to become embedded in public expectations as the biggest risk. She also said strong demand and capital spending could keep price pressures elevated even as economic growth continues and the labor market remains stable. Walter Bloomberg reported her comments on September 25. Photo: Shutterstock JH Kim.

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