Beth Hammack, President of the Federal Reserve Bank of Cleveland, continues to support an immediate interest rate increase by the Fed to control inflation that remains too high and to slow business expansion and investment. She said businesses are eager to raise capital and borrow money to move forward with investments, and if growth becomes excessive it will add pressure on prices and inflation. She reiterated that monetary policy must be tight enough to bring inflation, currently above 3 percent, back down to the 2 percent target.
Hawkish Fed official urges immediate rate hike, signaling higher policy rate.
Rate hike expectations push bond yields up, lowering bond prices.
