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Nick Timiraos, chief economics correspondent at Wall Street Journal, reports that Cleveland Fed President Beth Hammack has indicated interest rate hikes could "soon" be warranted if current economic trends continue.
Hammack emphasized that waiting for definitive proof of entrenched high inflation may require larger, more costly policy actions. She cautioned that timely policy responses are essential to prevent greater economic disruption.
Recent forecasts by Nick Timiraos showed April core PCE inflation rising to 3.3 percent, the highest since November 2023, according to his latest estimates. Fed Chairman Kevin Warsh has also advocated a shift toward using trimmed inflation measures, with the Dallas Fed’s measure showing 2.3 percent in April, as reported in a previous article. These developments frame the policy debate as officials consider the next steps.