Hammack Warns Rising Inflation Expectations Could Prompt Stronger Fed Action
Speaking at a Goldman Sachs event in New York, Hammack said persistent price pressures could become harder to control if consumers and businesses expect inflation to remain elevated.
Cleveland Fed President Beth Hammack cautioned that worsening inflation expectations could lead the Federal Reserve to take more forceful monetary policy action. Speaking at a Goldman Sachs event in New York, she said persistent price pressures may become more difficult to contain if consumers and businesses expect inflation to stay elevated. Hammack’s central point was that a sustained increase in inflation expectations could prompt a stronger Fed response and raise the risk of tighter monetary policy.