Hammack Says Fed May Need to Act Soon Against High Inflation

Federal Reserve Bank of Cleveland President Beth Hammack said it’s reasonable to hold interest rates steady for now given uncertainties about the economic outlook, but officials may need to act soon to address elevated inflation.

Hammack said she is more concerned about inflation, which has been above the Fed’s 2% target for more than five years, than she is about the labor market, which remains resilient.

“For today, it’s reasonable to keep rates steady given the uncertainties around the economic outlook,” Hammack said Tuesday in remarks prepared for an event in Cleveland. “But if recent data trends continue, it may ...