The Federal Reserve needs to pursue a more restrictive monetary policy to bring inflation down to the 2 percent target, according to Cleveland Fed chief Beth Hammack.
She advocates smaller but more frequent rate adjustments to reduce the risk of the central bank falling behind the curve, Bloomberg News reports.
Hammack, who dissented from the Fed’s decision to leave the interest rate unchanged last week, notes that inflation has been above target for nearly six years.
She also stressed the importance of the central bank’s political independence in maintaining confidence in monetary policy and the US dollar.
Investors expect rate hikes in December and March.
