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Key Fed official sees possible rate hike amid higher gas prices, inflation concerns
Beth Hammack said the Fed could cut rates if growth weakens, but persistent inflation above 2% could also require increases, according to recent remarks.
- On Monday, Cleveland Fed President Beth Hammack said an interest rate hike could be appropriate if inflation persists above the central bank's 2% target, signaling a potential policy shift away from rate cuts.
- Higher gas prices, now at $4.12 a gallon nationwide, are driven by the Iran war that began February 28, forcing the Federal Reserve to manage competing mandates for low inflation and maximum employment.
- Economists forecast that annual inflation will jump to 3.1% from 2.4% in February, with consumer prices rising 0.8% in March—the largest monthly increase in almost four years.
- Hammack acknowledged the Fed may need to cut rates if rising costs cause the economy to slow or unemployment to rise, creating a difficult balancing act for policymakers.
- President Donald Trump has harshly criticized the Fed for not cutting rates further, calling for the central bank's key rate to be lowered to 1% from its current level of about 3.6%.
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27 Articles
Top Fed official sees potential rate hike amid higher gas prices, inflation concerns
A top Federal Reserve official said Monday that an interest rate hike could be appropriate if inflation remains persistently above the central bank's 2% target, the latest sign that some policymakers are moving away from a bias toward reducing borrowing costs.
·Washington, United States
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Associated Press News+24 Reposted by 24 other sources
Key Fed official sees possible rate hike amid higher gas prices, inflation concerns
A top Federal Reserve official said Monday that an interest rate hike could be appropriate if inflation remains persistently above the central bank’s 2% target, the latest sign that some policymakers are moving away from a bias toward reducing borrowing costs.
·United States
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Total News Sources27
Leaning Left8Leaning Right0Center17Last UpdatedBias Distribution68% Center
Bias Distribution
- 68% of the sources are Center
68% Center
L 32%
C 68%
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