Federal Reserve Bank of Cleveland President Beth Hammack said inflation remains too high and is unlikely to return to the Fed’s target without additional action from the central bank.
"Inflation has remained stubbornly above 2% for more than five years, and I am not confident it will return to our objective on its own," Hammack said in a statement on Friday.
Beth Hammack said, “now is the time” for the Federal Reserve to cut interest rates to help bring PCE inflation back to its 2% target and uphold its commitment to price stability. "The longer that high inflation persists, the more challenging and costly it can be to bring it back down,” she said.
Hammack said inflation pressures are intensifying from both supply and demand, with businesses reporting broader pricing pressures and consumers growing increasingly frustrated by persistently high prices. She said controlling inflation is the Fed’s top priority right now because the labor market remains strong, with unemployment close to its maximum-employment level.
Kashkari Backs Gradual Rate Hikes
