Fed's Hammack worried inflation expectations could deteriorate
TLT•Cleveland Fed President Beth Hammack said she is increasingly concerned that inflation above the Fed’s 2% target for more than five years could weaken public confidence that price pressures will return to target.
1. Inflation expectations concern
Hammack said the biggest inflation risk is that an “inflationary mindset could start to set in.” She said monetary policy needs to remain restrictive to help bring inflation back to the Fed’s 2% target.
