Cleveland Fed's Hammack signals possible rate increases
Hammack said restrictive policy is appropriate and that gradual, prompt adjustments are preferable to larger corrections later.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Cleveland Fed President Beth Hammack said higher interest rates could be needed as the risk of an inflationary mindset forming grows. She said prompt, incremental policy shifts are preferable to waiting and forcing larger corrections later. She also said she hopes inflation can be lowered without damaging the job market, though that may mean cooling the pace of corporate investment.
Why it matters
Hammack's comments point to keeping inflation expectations grounded and returning inflation to the 2% target. Her remarks suggest cooling demand could come at the cost of corporate investment.
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