Fed Official Hammack Says Restrictive Policy Is Needed to Curb Inflation

Federal Reserve official Hammack said Thursday that monetary policy needs to move into restrictive territory to bring inflation down, pointing to demand pressure and an inflation trend she said was heading in the wrong direction.

Hammack said demand pressures are pushing prices higher. She also said the latest inflation data show the inflation trend moving in the wrong direction.

She said the Federal Reserve has fallen short for years in its responsibility to keep inflation stable, while performing well on employment. Her remarks addressed both areas as she called for restrictive policy to curb inflation.