Fed's Hammack says rates aren't tight enough to curb inflation

Cleveland Fed President Beth Hammack said monetary policy is not restrictive enough to bring down persistently high inflation and argued that it is time for the Federal Reserve to act. She cited recent economic data and conversations with businesses, including a Northeast Ohio manufacturer reporting double-digit increases in input costs. Hammack was one of three policymakers who dissented from the Fed’s July decision to leave interest rates unchanged. Following a stronger-than-expected jobs report, markets were assigning slightly better-than-even odds to a rate increase at the Fed’s September 15–16 meeting, while expectations for near-term rate cuts have weakened.