FED’S HAMMACK WARNS MORE AGGRESSIVE ACTION MAY BE NEEDED TO FIGHT INFLATION

Cleveland Fed President Beth Hammack warned that deteriorating inflation expectations could force the Federal Reserve to take more aggressive monetary policy action.

Speaking at a Goldman Sachs event in New York, Hammack said persistent price pressures could become harder to control if consumers and businesses begin expecting inflation to remain elevated.

The key takeaway: A sustained rise in inflation expectations could require a stronger Fed response, increasing the risk of tighter monetary policy.