Fed's Hammack Urges Against Delay in Further Rate Tightening
By Dean Seal
Cleveland Fed President Beth Hammack said she would prefer that the central bank make small policy adjustments quickly to rein in inflation rather than wait and risk a bigger course change later on.
Hammack said inflation pressures are relatively broad-based rather than concentrated in a single field, such as energy, in prepared remarks for the National Association of Business Economics' annual meeting. "With each passing month, persistently elevated inflation raises the risks of an inflationary mindset becoming entrenched in the economy," she said.
Since the labor market is stable and with signs of strength elsewhere in the economy, now is the right time to take on a more restrictive monetary policy stance, Hammack said.
"Trimming the sails through frequent smaller adjustments reduces the risks of being blown far off course, of an inflationary mindset taking hold, and of taking longer to reach the destination," Hammack said.
Hammack is a voting member of the Fed's rate-setting committee, which raised rates last month. The probability of another hike at the meeting later this month is currently at just under 22%, according to CME's FedWatch tool.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
October 12, 2026 13:06 ET (17:06 GMT)
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