Federal Reserve Bank of Cleveland President Beth Hammack stated that she voted for a rate hike and against the central bank consensus this week because inflation is too high and is unlikely to ease back to acceptable levels absent central bank action.
Inflation Concerns
Hammack expressed her concerns about inflation, which has remained above 2 percent for more than five years. She believes that a higher federal funds rate would help restrain economic activity and reduce inflationary pressures.
Maintaining the Fed’s current monetary policy stance came as inflation remains well above the central bank’s 2 percent target and is under pressure from energy prices tied to the Middle East war, tariffs, and from strong investment related to the build out of artificial intelligence infrastructure.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
