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Updated · Bloomberg · Jun 2Fed May Need to Act Soon on Inflation Above 2%, Hammack Says
3 articles · Updated · Bloomberg · Jun 2
- Beth Hammack said the Federal Reserve can reasonably keep rates steady for now, but may need to move soon if elevated inflation persists.
- Inflation has run above the Fed’s 2% target for more than five years, making it the Cleveland Fed president’s bigger concern than growth risks.
- The labor market, by contrast, remains resilient, giving policymakers room to wait briefly even as price pressures keep the case for action alive.
As public trust in the 2% inflation target wanes, can the Fed restore credibility without a recession? AI is both fueling and fighting inflation. Which side will win and dictate the Fed's next move? Are the Fed's tools obsolete against inflation driven by new technology and global conflict?