Cleveland Fed President Hammack said inflation remains above target and the Fed
may need multiple rate hikes to bring it down. She said a 25bp hike would not
have a material economic impact but would not predict the number of moves or the
terminal rate. Hammack judged the current 3.50%-3.75% policy range is not
clearly restrictive and said businesses have not cut growth investment, arguing
prompt action is preferable because delays make returning to 2% harder. She
added the labor market shows no obvious problems and July payrolls will not
change her inflation focus. Hammack dissented at July’s FOMC, preferring a 25bp
increase, and said markets can only assist—not substitute for—Fed policy action.
