Federal Reserve Bank of Cleveland President Beth Hammack on Thursday reiterated her call for higher interest rates, joining a second Federal Reserve official in advocating further tightening amid persistent inflation pressures.
Hammack, speaking at an event in Jackson Hole, Wyoming, stated that inflation remains elevated above the central bank’s 2% target, adding that delaying action risks undermining public confidence in the Fed’s ability to restore price stability. "We’ve got a lot of time before our next meeting, so I don’t want to prejudge anything," she said. "But I believe now is the time to act."
Her remarks followed comments from Federal Reserve Bank of Kansas City President Jeffrey Schmid, who described inflation as "still stubborn and it’s still sticky" and emphasized the need for continued policy measures to achieve the 2% inflation goal. Schmid’s statement underscored the Fed’s ongoing challenge in addressing price pressures that have persisted despite prior tightening efforts.
The calls for higher rates come ahead of the annual Jackson Hole economic symposium, where central bankers and policymakers typically discuss monetary policy frameworks and economic outlooks. Hammack’s push for additional tightening aligns with her dissenting vote during the Fed’s late July policy meeting, where she favored an interest rate increase amid concerns over inflation dynamics.
The Fed has maintained its benchmark rate at a 23-year high since July 2023, balancing the need to curb inflation with risks to economic growth. Investors and analysts will closely monitor signals from the Jackson Hole gathering for further guidance on the central bank’s policy trajectory.
