Cleveland Fed President Hammack indicates higher rates may be needed to combat inflation remaining above target for years.
Federal Reserve Bank of Cleveland President Beth Hammack stated that further interest rate hikes could be necessary if inflation fails to moderate. Hammack, a voting member of the FOMC, emphasized that inflation has remained too high for the past five years and may require tighter policy to return to the Fed’s target.
The Fed’s latest meeting, led by new Chair Kevin Warsh, left rates unchanged at 3.5%-3.75%. While officials’ forecasts suggest potential hikes this year, the policy statement omitted forward guidance, reflecting a data-dependent approach. Hammack reiterated that each meeting remains live, with decisions hinging on incoming economic data.
Hammack’s comments mark her first public remarks since the June FOMC meeting, underscoring the Fed’s readiness to act if inflation pressures persist.