Fed official Hammack: Interest Rate should be maintained unchanged until inflation falls further.

According to Golden Finance, Cleveland Fed President Beth Hammack said that it is appropriate to keep the Intrerest Rate unchanged for a “period of time” while policy makers wait for inflation to further decline and analyze the economic impact of new government policies. “We have made good progress, but 2% inflation is not yet visible,” Hammack said in a speech prepared for a Kentucky Lexington event on Tuesday. “As long as the labor market remains healthy, I will look for extensive evidence that inflation can sustainably return to 2% before further adjusting policies.” Hammack outlined two key factors that require patience in adopting monetary policy. She noted that the upward risks of inflation are lingering, including strong consumer spending and possible lagging effects of last year’s interest rate cut.