Cleveland Federal Reserve President Beth Hammack posted on her LinkedIn account on May 17 (local time) expressing concern that inflation remains too high, while the labor market is near her maximum employment estimate. Hammack, known for her hawkish stance within the Federal Reserve, stated that persistently high inflation is her greater concern. The post came one day before the start of the Federal Open Market Committee (FOMC) blackout period, with the FOMC meeting scheduled for the 28th of this month.
Hammack Highlights Broad-Based Inflation Pressures
In her LinkedIn post, Hammack wrote that inflation is too high and the labor market is right near her maximum employment level estimate. She emphasized that persistently high inflation is the greater concern. Hammack noted that business and community leaders she has met in the field report that inflation is not coming from a single source but is broadly based. She stated that for the first time in her tenure, she is hearing from businesses that the Fed needs to take action to curb inflation, and consumers are expressing growing desperation over their inability to make ends meet.
Business Leaders and Consumers Report Inflation Strain
Hammack described feedback from businesses and community representatives indicating widespread inflation pressures across sectors. She stated that businesses are calling for Fed action to control inflation, a message she has not heard before during her time as president. Consumers, according to her account, are reporting increasing desperation as they struggle to afford basic living expenses. Based on recently released consumer price and producer price data, the June core Personal Consumption Expenditures (PCE) price index is estimated to have risen 3.3% year-over-year, Hammack explained in her post.
Hammack's Voting Record and Upcoming FOMC Meeting
Hammack took office in August 2024 and cast a dissenting vote at the December FOMC meeting that year, advocating for holding rates steady while the committee approved a 25 basis point cut. Throughout the second half of last year, when she did not hold voting rights, she consistently expressed skepticism about rate cuts. In April of this year, after regaining her voting seat, Hammack voted to hold rates but dissented against including an easing bias in the FOMC statement. Her latest LinkedIn post was published one day before the blackout period, during which Fed officials are restricted from making policy-related comments. The FOMC meeting is scheduled to begin on the 28th of this month and will run for two days.
FAQ
What did Beth Hammack say about inflation on May 17?
Beth Hammack posted on her LinkedIn account on May 17 (local time) stating that inflation is too high and that persistently high inflation is her greater concern. She noted that the labor market is near her maximum employment estimate and that she is hearing from businesses and consumers about broad-based inflation pressures.
Why did Hammack dissent at the April FOMC meeting?
At the April FOMC meeting, Hammack voted to hold interest rates steady but dissented against including an easing bias in the committee's statement. She has a history of hawkish dissents, having also voted against a 25 basis point rate cut in December of the previous year.
