Cleveland Federal Reserve President Beth Hammack said Monday that more than one interest rate increase will likely be needed to bring inflation back under control, warning that the central bank should begin acting now before the problem becomes harder to resolve. Hammack told Yahoo Finance that one 25 basis point move probably does not do a whole lot for the economy, suggesting some number of movements will be required. She said interest rates in their current range of 3.5% to 3.75% are not placing meaningful restraint on the economy, and that now is the time to act. Hammack dissented at the Federal Open Market Committee's July meeting, preferring a quarter-point increase along with Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan, while the committee voted 9-3 to hold rates steady.
Hammack says multiple rate hikes needed, implying higher policy rate.
Expected rate hikes push yields up, lowering bond prices.
