Fed Governor Hammack said outreach to firms across the Cleveland Fed district
shows economic data and business feedback indicate policy is not sufficiently
restrictive and inflation remains too high, requiring action. She cited a
northeast Ohio mid-sized manufacturer who said the FOMC should raise rates as
many input costs are rising in double digits. Hammack said inflation is above
3%, the labor market is stable and near her estimate of maximum employment, and
firms report sustained cost pressure forcing difficult trade-offs; she warned
the longer inflation stays above target the harder it will be to bring down and
said she will continue to monitor data and contacts — now is the time to act.
