Federal Reserve Bank of Cleveland President Beth Hammack on Tuesday indicated that the U.S. central bank may need to consider raising interest rates in the near future if inflation continues to move higher, underscoring growing concern among policymakers about persistent price pressures, according to Reuters.
Speaking at the City Club of Cleveland, Hammack said the balance of risks has shifted increasingly toward inflation, which remains well above the Federal Reserve's 2% target. According to Reuters, she expressed concern that monetary policy may no longer be restrictive enough to bring inflation back under control and warned against waiting for clearer signs that elevated inflation has become entrenched in the economy.
