Cleveland Fed's Hammack Backs Restrictive Policy, Says Better if It Comes 'Relatively Quickly'
Hammack said smaller, faster rate moves may be needed as inflation stays broad-based and firms in her district plan higher prices.
- On Monday, Cleveland Fed President Beth Hammack said the central bank should move "relatively quickly" to a restrictive policy stance to control broad-based inflation affecting firms' price-setting plans.
- Inflationary pressures have become broad-based rather than concentrated, Hammack said, with "demand-side pressures coming from the AI buildout" raising costs for data centers, aviation, and construction.
- With core inflation at 3% compared to a year prior, Hammack expects it will take "some time" to reach the Fed's 2% goal, even with appropriate monetary policy.
- Traders currently see a more than 78% likelihood of unchanged rates at the Fed's October meeting, though they anticipate a nearly 88% chance of a rate hike by December.
- While Fed Chairman Kevin Warsh prefers a "quieter" Fed approach, Hammack advocates for providing a "reaction function" to ensure transparency so households and firms can plan appropriately.
16 Articles
16 Articles
The Economic Times
Times of IndiaCleveland Fed's Hammack backs restrictive policy, says better if it comes 'relatively quickly'
Cleveland Fed President Beth Hammack has stressed the urgency of adopting a strict monetary policy as a response to mounting inflation that now permeates various sectors, not just energy. She advocates for prompt adjustments to keep inflation on target at 2%, emphasizing transparency in Fed policies to aid both households and businesses in their financial planning amidst rising prices.
The Fed's Hammack Claims that the Central Bank Does Not Postpone Further Increases in Interest Rates
The president of the Cleveland district of the Federal Reserve (Fed), Beth Hammack, said on Monday that she prefers the central bank to make small adjustments in monetary policy quickly to contain inflation, instead of waiting and running the risk of having to make a more significant change of direction later. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Fed’s Hammack Says Smaller, Frequent Rate Adjustments Preferable
Federal Reserve Bank of Cleveland President Beth Hammack said smaller, more frequent adjustments to policy can help inflation expectations remain anchored, but she stopped short of backing a rate increase this month.
Fed's Hammack backs restrictive policy, says better if it comes ...
Coverage Details
Bias Distribution
- 62% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
