Federal Reserve's Hammack: Fed May Need to Act Quickly to Address High Inflation

Odaily Planet Daily reported that Federal Reserve's Hammack stated, given the many uncertainties in the economic outlook, keeping interest rates unchanged is currently reasonable, but officials may need to act quickly to address the rising inflation problem.

Hammack stated that she is more concerned about the inflation issue, as it has exceeded the Fed's 2% target level for five years; while the labor market remains robust, which does not worry her much. Hammack noted that the Fed's benchmark interest rate "may not be restrictive," and she has not heard business owners complaining that high interest rates are hindering their investments. Price pressures are "broadly based," covering goods and non-housing services sectors. (Jin Shi)