United States Fed official warns inflation may prompt hike
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Cleveland Federal Reserve President Beth Hammack warned that U.S. inflation remains “too high” and suggested she could support future interest rate increases, according to a social media post released this week. Hammack, a voting member of the Federal Open Market Committee, said discussions with business and community leaders point to broad-based price pressures driven by energy costs, supply chain issues, insurance, and the artificial intelligence boom. While consumer inflation eased to 3.5 percent in June, it has stayed above the Fed’s 2 percent target for about five years. Other Fed officials, including Lorie Logan and Philip Jefferson, have also signaled openness to rate hikes.
More context
Timeline
- Past five years, inflation exceeds Fed target
- June, consumer inflation slows to 3.5 percent
- This week, Hammack posts inflation warning online
- This week, Hammack reports broad-based price pressures
- A day earlier, Logan backs possible rate increase
- Recently, Jefferson urges considering additional rate hikes
- July 28-29, FOMC schedules next policy meeting
- Current market data shows higher September hike odds
Why it matters
If the Fed hikes interest rates, your loans could get pricier. This includes mortgages, car loans, and credit card debt. Check your loan terms. See if they're fixed or variable.
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
