Hammack urges immediate Fed rate hike

Cleveland United States — Federal Reserve Bank President Beth M. Hammack reiterated her call for the U.S. central bank to raise interest rates immediately to combat inflation that remains above 3%, well above the Fed's 2% target. Speaking at the Dayton Area Chamber of Commerce, Hammack argued that strong business borrowing and investment are adding to inflationary pressures, and that policy restraint is needed to bring inflation back to target faster than a gradual glide path would allow. She noted that inflation data has improved over the past two months but expressed lack of confidence that the trend will continue, citing that it has been over five years since the Fed last hit its 2% target. Hammack was one of three Fed officials who dissented at the last Federal Open Market Committee meeting against the majority decision to hold rates in the 3.50%-3.75% range. She highlighted real-world impacts of high prices, including a retailer raising prices due to uncertainty and families struggling with gas costs and food bank reliance.