EEToday News Service reported on the 13th that Cleveland Federal Reserve Bank President Mamek said on Monday (12th) that to ensure inflation returns to the 2% target in a timely manner, the Fed should adopt a restrictive monetary policy and prefers to adjust interest rates by smaller increments but at a faster pace, avoiding the need for a sharp tightening later if inflation persists.
In prepared remarks for the National Association for Business Economics (NABE) annual meeting, Mamek noted that inflation pressures in the U.S. are no longer limited to energy prices, with some businesses planning to accelerate price increases. She believes that if inflation expectations continue to heat up, it could make price pressures harder to control.
The Fed unanimously approved a 0.25 percentage point rate hike in September. The minutes from the September meeting indicated that most officials expected one more rate hike this year. (yc)
In prepared remarks for the National Association for Business Economics (NABE) annual meeting, Mamek noted that inflation pressures in the U.S. are no longer limited to energy prices, with some businesses planning to accelerate price increases. She believes that if inflation expectations continue to heat up, it could make price pressures harder to control.
The Fed unanimously approved a 0.25 percentage point rate hike in September. The minutes from the September meeting indicated that most officials expected one more rate hike this year. (yc)
