Federal Reserve Bank of Cleveland President Beth Hammack warned that persistently high inflation could lead Americans to become accustomed to elevated prices, increasing the risk of inflationary expectations becoming more deeply entrenched in the economy, Reuters reported.
Hammack said the Federal Reserve must ensure monetary policy remains restrictive enough to bring inflation back towards its 2% target. However, she stopped short of specifying what action she believes the central bank should take on interest rates during her latest appearance.
