🏛 Fed’s Hammack Advocates Restrictive Policy Amid Inflation Concerns

Fed President Hammack emphasized the need to maintain a restrictive monetary policy following the first Fed rate cut of the year. Speaking on CNBC, she highlighted that inflation continues to exceed the Fed’s 2% target and is unlikely to return to goal until late 2027 or early 2028.

🔑 Key Takeaways:

🔥 Persistent Inflation: Price growth remains above target, especially in the services sector, which shows stubborn inflationary pressures.

⚖️ Dual Mandate Balance: While employment is important, Hammack views price stability as the greater challenge at present.

💡 Policy Outlook: Further rate cuts are not favored for now; maintaining a restrictive stance is seen as essential to achieving inflation goals.

⏳ Long-Term Horizon: The Fed is prepared for a sustained effort to bring inflation back to 2%, signaling a cautious approach to future monetary easing.

🔍 Why It Matters: Investors and businesses should be mindful that monetary policy may remain tight for longer, shaping borrowing costs, market dynamics, and long-term planning.

#FederalReserve #Inflation #MonetaryPolicy #Finance #Economy

https://coingape.com/feds-hammack-backs-restrictive-policy-over-fed-rate-cuts/?utm_source=coingape&utm_medium=linkedin