Fed's Beth Hammack Favors Gradual Rate-Hike Path to Lower Inflation
Hammack said gradual increases would be less disruptive and reduce the risk of an inflationary mindset as the Fed keeps inflation above target.
- On Thursday, Cleveland Federal Reserve President Beth Hammack said the Fed must do more to bring inflation down to its 2% target, citing unacceptably high price pressures.
- Last week, Hammack and Fed Governor Lisa Cook dissented in favor of a rate hike as the Fed held its benchmark rate within the 3.75%-4.00% range.
- Hammack said she prefers "more frequent smaller adjustments when possible," noting this approach would be less disruptive to households, businesses, and financial markets.
- Richmond Fed President Tom Barkin also backed gradual rate increases on Thursday, as Bloomberg reported several additional policymakers have voiced support for tightening slowly.
- Speaking in Zurich, Hammack emphasized that central bank independence is critical to maintaining the dollar's status and expressed skepticism that cryptocurrencies could threaten the greenback.
21 Articles
21 Articles
(New York = Yonhap News) Correspondent Kim Yeon-sook = Beth Hammack, President of the U.S. Federal Reserve Bank of Cleveland, [will] bring inflation back to the Federal Reserve's (Fed) target...
The president of the County of Cleveland of the Federal Reserve (Fed), Beth Hammack, defended on Thursday the need for a more restrictive monetary policy in the United States and reinforced her concern about inflationary pressures in the country. I believe that it will be necessary to bring monetary policy to a restrictive stance in order to bring inflation back to 2% in due time.
Fed’s Hammack Says Restrictive Rates Needed to Cool Inflation
Federal Reserve Bank of Cleveland President Beth Hammack said interest rates need to be restrictive to bring inflation to the central bank’s target, and more frequent moves can reduce the risk that policy falls behind.
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