Federal Reserve Bank of Cleveland president Beth Hammack stated in a June 2 speech to the City Club of Cleveland that she thinks interest rates may have to rise.
“Based on the data, I’m more concerned about the growing risks of persistently elevated inflation than the risks to full employment and also that monetary policy may not be sufficiently restrictive to bring inflation down to 2%... If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost,” she said. “It’s reasonable to keep rates steady given the uncertainties around the economic outlook. But if recent trends continue, it may soon be appropriate to act.”
