Fed’s Hammack Says High Inflation Sticking, Reaching 2% Critical
Federal Reserve Bank of Cleveland President Beth Hammack said she remains focused on price stability as the labor market softens, adding it is critical for the US central bank to reach its 2% inflation target.
“I am worried about the labor market,” Hammack said in an interview with MarketWatch published Thursday. But “we’ve got this persistent high inflation that is sticking around; when all is said and done it will be the better part of a decade”
“When you talk with these low- and moderate-income families, people who are [paid] hourly, they are really struggling,” Hammack said
The Cleveland Fed chief said she doesn’t back any more interest-rate cuts unless the economy changes
Hammack said a lot of inflation is concentrated in services and not imported goods
“If you read some of the market participant chatter, some of them are talking about, ‘well, maybe what the Fed means by its target is just below 3%, and that getting it all the way to 2% is not a priority,’” she said. “To me, getting it back to 2% is critical for our credibility, and that’s our objective”
Source : Bloomberg.com
