Hammack wants higher rates: August PCE at 3.4% is still 70% above the 2% target
Cleveland Fed President Beth Hammack said Monday that interest rates need to be higher and that current policy is not restrictive enough, with the Oct 27-28 FOMC 15 days out.
August PCE inflation was 3.4% (core 3.0%). Against the 2% target that is a 70% overshoot on headline and 50% on core.
She prefers smaller more frequent hikes over waiting for a bigger fix.
Sources: Barron's: Cleveland Fed's Hammack says interest rates need to be higher · @DeItaone: Hammack more tightening needed; prefers smaller more frequent rate moves · @zerohedge: Fed's Hammack says interest rates need to be higher · @CNBC: Hammack says higher rates could be needed as inflationary mindset risks grow
Not financial advice. For informational and educational purposes only.
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