Central Banks
Fed’s Hammack Says Dissenting Rate-Cut Vote Driven by Inflation Concerns
- Cleveland Fed chief says monetary policy not far from neutral
- An inflation stall would risk de-anchoring expectations
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Federal Reserve Bank of Cleveland President Beth Hammack, in explaining her dissenting vote at this week’s central bank meeting, said interest rates should be held steady until there’s more progress in cooling inflation.
Hammack said she estimates that interest rates are close to a neutral level where they would neither slow nor stimulate the economy, and suggested rates should remain high enough to modestly restrict economic activity “for some time.”