[Fed's Hamack: Inflation Remains Too High, Now is the Time to Act] Federal Reserve Bank of Ohio President Hamack stated that after discussions with businesses in the Fourth Federal Reserve District, economic data and business feedback both indicate that current monetary policy is not restrictive enough, inflation remains too high, and action is needed. Hamack cited the example of the head of a mid-sized manufacturing company in northeastern Ohio, who told her that even though his industry is typically affected by high interest rates, he still believes the Federal Open Market Committee (FOMC) should raise interest rates because businesses are facing double-digit increases in many input costs. She noted that inflation is currently above 3%, the labor market is stable and close to its estimate of maximum employment, and businesses in the Fourth Federal Reserve District are also reporting persistently rising costs and being forced to make difficult choices. Hamack stated that economic data and business feedback send the same signal: policy is not sufficiently restrictive, and the longer inflation remains above target, the more difficult it will be to bring it down. She said she will continue to monitor data and business feedback, adding, "What we're hearing now is that it's time to act."
