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Fed's Hammack says 'now is the time to act' on raising interest rates
CNBC • • business
Key Points:
- Cleveland Federal Reserve President Beth Hammack reiterated the need for higher interest rates, citing recent inflation data showing inflation remains around 3% annually, which is above the Fed's target.
- Hammack emphasized that despite slower monthly price increases, the Fed should tighten monetary policy now to prevent inflation from becoming entrenched and causing prolonged economic pain.
- At July's Federal Open Market Committee meeting, Hammack dissented against holding rates steady, preferring a quarter-point hike to address persistent inflation pressures.
- She highlighted concerns about inflation's impact on households, sharing anecdotes from workers struggling to make ends meet despite steady employment.
- Despite Hammack's stance, market expectations currently suggest the Fed will pause rate hikes in September and October, with a potential increase not expected until December.
