Fed’s Hammack Says Policy Could Be on Hold for Quite Some Time

Federal Reserve Bank of Cleveland President Beth Hammack said that interest rates are only modestly restrictive and that officials may hold borrowing costs steady for some time.

Hammack said Tuesday the Fed still has “some distance to go” before it reaches its inflation target, despite recent progress. She also said official readings are backward looking and may not fully capture current developments, including a recent increase in oil prices that threatens to boost inflation expectations.