Hamak: inflation is not up to the target and may require a hike to contain inflation

The Chairman of the Cleveland Federal Reserve said that inflation was still not returning to target levels and that the Fed might need to increase interest rates. He argued that a 25 basis point increase would have no significant impact on the economy, but was reluctant to prejudge the number of specific increases or the final interest rate level. According to Hammark, the current interest rate range of 3.50 to 3.75 per cent does not place significant constraints on the economy, and enterprises have not reduced their investment growth because of high interest rates, and now is the time for action. He stressed that the longer the wait, the harder it would be to return to 2 per cent of inflation. Hammark opposed the maintenance of interest rates at the July US Federal Reserve conference, preferring an increase of 25 basis points。