Cleveland Fed President Beth Hammack said a deterioration in the public's inflation expectations would likely require a more aggressive central bank response. She spoke at a Goldman Sachs event in New York on Thursday.
Federal Reserve Bank of Cleveland President Beth Hammack warned on Thursday that if public inflation expectations were to deteriorate, that would likely require more aggressive central bank action to counter.
Her concern centers on an inflationary mindset. If expectations take hold that price pressures grow more persistent, she said, it makes the job of monetary policy much harder.
Hammack spoke at an event held by Goldman Sachs in New York. According to Hammack, "we might need to move even more" than if that mindset had not set in.
Source: Investing.com (Reuters)
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