Cleveland Federal Reserve Chairman Hamak said that US interest rates need to rise further to pull inflation back to the Fed's 2% target. In an interview with Barron's, Hamak warned that despite higher bond yields, the current tightening of monetary policy is still insufficient. She favors smaller, more frequent rate hikes, but is open about when the next rate hike will take place. “The economy needs to be further tightened.” Hamak also warned that if inflation continues for a long time, it may solidify in the expectations of consumers and businesses, making it more difficult for the Federal Reserve to restore price stability.

Cleveland Federal Reserve Chairman Hamak said that US interest rates need to rise further to pull inflation back to the Fed's 2% target. In an interview with Barron's, Hamak warned that despite higher bond yields, the current tightening of monetary policy is still insufficient. She favors smaller, more frequent rate hikes, but is open about when the next rate hike will take place. “The economy needs to be further tightened.” Hamak also warned that if inflation continues for a long time, it may solidify in the expectations of consumers and businesses, making it more difficult for the Federal Reserve to restore price stability.