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Beth Hammack calls for higher interest rates to combat persistent inflation at Jackson Hole symposium

Cleveland Federal Reserve President Beth Hammack stated on Thursday that the Federal Reserve should increase interest rates to address persistent inflation. Speaking at the annual symposium in Jackson Hole, Wyoming, Hammack noted that while monthly price increases have slowed, inflation remains well above the central bank's 2% target. Hammack argued that the longer inflation remains above the objective, the harder it will be to bring it down, and the more strain it will place on households and businesses. She highlighted the recent meeting with workers in Erie, Pennsylvania, who expressed a sense of despair over the cost of living. While market pricing suggests the Federal Reserve will hold rates steady until December, Hammack remains firm in her belief that the next move should be a hike. She emphasized the market's risk of an inflationary mindset setting in among the public. Other officials, including Kansas City Federal Reserve President Jeffrey Schmid, also acknowledged that inflation remains stubborn and sticky, though Schmid did not explicitly call for an immediate hike.

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