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Fed’s Hammack says further tightening may be needed
Hammack reiterated she is open to adjusting the pace of rate increases rather than committing to a single path.
FXStreet reports that Cleveland Fed President Beth Hammack said the economy is thriving and that further tightening is needed, while also reiterating earlier remarks that she is open to adjusting the pace of rate increases.
The outlet notes that the Federal Reserve’s policy uses interest rate adjustments to meet its mandates for price stability and full employment, with rate hikes typically strengthening the US dollar by raising borrowing costs.
FXStreet adds that if inflation falls below the Fed’s 2% target or unemployment is too high, the Fed may lower rates to encourage borrowing, which would weigh on the greenback.