Fed’s Hammack says ‘now is the time to act’ on raising interest rates
Beth Hammack said inflation is still above the Fed’s target and warned that delaying rate hikes could increase pain for households and businesses.
- Cleveland Federal Reserve President Beth Hammack repeated her call for interest rate hikes on Thursday, arguing the Fed remains too far from its inflation goal and should tighten monetary policy.
- At the Federal Open Market Committee's July meeting, Hammack was one of three dissenters who preferred a quarter percentage point rate hike rather than holding rates between 3.5% and 3.75%.
- Recent inflation data released Wednesday showed rates running around 3% annually, while the core personal consumption expenditures price index gained 0.2% last month and hit 3.3% for the year.
- City Federal Reserve President Jeffrey Schmid also said Thursday that inflation remains "still stubborn and it's still sticky," and the Fed has not yet managed to "break through" to its target.
- Federal Open Market Committee minutes released last week showed participants assessed that policy tightening would likely be necessary if inflation does not decline, with some noting current financial conditions may not be sufficiently restrictive to reach 2 percent.
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The president of the Cleveland district of the Federal Reserve (Fed), Beth Hammack, said on Thursday that the current level of monetary policy is not restrictive enough to reduce inflation and that, in her view, now is the time for the American central bank to act to combat price increases in the United States. The statements were given in an interview with CNBC during the Jackson Hole Symposium, Wyoming. It is part of the Fed's regional unit me…
Hammack Wants a Hike Now. Schmid Wants More Data. What Will Warsh Say? - ActionForex
Fed officials delivered a broadly hawkish inflation message from Jackson Hole on Thursday, but differed on how quickly policy needs to respond. Cleveland Fed President Beth Hammack was most forceful, telling CNBC “I believe now is the time to act” and arguing current rates do not look restrictive. Hammack, who dissented in favor of a […] The post Hammack Wants a Hike Now. Schmid Wants More Data. What Will Warsh Say? appeared first on ActionForex.
The president of the Cleveland Federal Reserve, Beth Hammack, joins other central bank voices calling for a rise in rates at the next meeting
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