Forex
Home›Forex›Central Banks›Fed President Beth Hammack flags inflation expectation…
Fed President Beth Hammack flags inflation expectations risk
Hammack said the Fed must keep policy at a restrictive stance to lower inflation, warning that a failure to make progress could shift expectations.
Cleveland Federal Reserve President Beth Hammack warned that the biggest risk to inflation is the emergence of an inflationary mindset, according to remarks delivered during a Cleveland Fed panel discussion.
Hammack reiterated that the Fed needs to make progress in lowering inflation and emphasized the importance of maintaining restrictive policy rates to support that effort.
She also noted that the public has dealt with above-target inflation for an extended period, with growth holding up and the job market stable, while demand pressure and consumer spending and capital expenditures could keep inflation under pressure for a while.