Bitcoin slid under $69,000 on Tuesday after Federal Reserve Bank of Cleveland President Beth Hammack said policymakers may need to take action “soon” if inflation continues to trend higher.
“Based on the data, I’m more concerned about the growing risks of persistently elevated inflation than the risks to full employment and also that monetary policy may not be sufficiently restrictive to bring inflation down to 2 percent,” Hammack made the remarks in a speech prepared for the City Club of Cleveland.
Hammack said the US economy remains strong, with a stable labor market near full employment and financial conditions that continue to support growth. However, she said inflation is above the Fed’s 2% target and moving higher, with broad-based increases across goods and services.
The Cleveland Fed president said it is reasonable for the Fed to hold interest rates steady in the near term, but cautioned that monetary policy may not be restrictive enough to bring inflation back to target. She warned that delaying action could make it more costly to restore price stability.
“If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost,” she emphasized.
