The Federal Reserve must shift toward a more restrictive policy to curb rising price pressures, Cleveland Fed President Beth Hammack said. She advocated for the use of gradual interest rate hikes as the most effective method to bring inflation back to the central bank’s 2% target without causing undue volatility in the financial system.
Hammack noted that inflationary pressures are now spilling across the economy, which may necessitate more frequent policy adjustments to prevent the Fed from falling behind. During her remarks, she also emphasized the necessity of maintaining the central bank’s independence and voiced confidence in the global reserve status of the US dollar.
