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Beth Hammack says multiple rate hikes needed to fight US inflation
Fox Business • • business
Key Points:
- Cleveland Federal Reserve President Beth Hammack dissented from the Fed's decision to keep interest rates unchanged, advocating for multiple rate hikes to prevent inflation from becoming entrenched.
- Hammack believes the current federal funds rate target range of 3.5% to 3.75% is not sufficiently restrictive to curb inflation, which remains above the Fed's 2% target.
- She emphasized the importance of acting now to raise rates gradually to avoid a more abrupt policy move later, comparing it to gently applying brakes to stop price growth.
- Despite an unexpected loss of 23,000 jobs in July, Hammack does not see significant labor market issues, noting the unemployment rate of 4.1% is near full employment.
- The Fed will review new inflation data ahead of its mid-September meeting, with July CPI and PCE figures expected in the coming weeks.
