Federal Reserve official Harker: If inflation remains above the target, interest rate hikes may be necessary

Cleveland Fed President Beth Hammack said that if inflation keeps running above the Federal Reserve’s 2% target, a rate hike may be appropriate.

Hammack, in an interview with the Associated Press on Monday, said she would prefer for officials to keep interest rates unchanged for “quite some time.”

She also outlined scenarios in which rates would need to be raised or lowered.

Hammack said that if the labor market deteriorates significantly, “I can foresee a scenario where we would need to cut interest rates.”

“Or if inflation stays above our target, I can also foresee a scenario where we might need to raise interest rates,” she said.

Hammack said that the Cleveland Fed’s projections show that April inflation could reach 3.5%.

Hammack said, “Today, inflation has been above our target level for more than five years,” and if it rises further, it would indicate that inflation is “moving in the wrong direction, away from our 2% target.”

Hammack has a vote on monetary policy this year, and she supported the decision to keep interest rates unchanged in January and March.

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责任编辑：丁文武