Federal Reserve Hamak warns of inflation risks, calls for cautious withdrawal of restrictive policies

On September 23rd, the President of the Cleveland Federal Reserve said on Monday that the Federal Reserve needs to be "very cautious" in unwinding its restrictive monetary policy with inflation still above the Fed's 2% target and remaining stubborn. "I think we are only a short distance away from neutral interest rates, and if we remove this constraint on the economy, I am concerned that we will overheat again," said Hamak, one of the most hawkish officials who does not have a vote this year and did not make it clear whether she supported last week's rate cut. She stressed that inflation remains a major concern for her, while the job market remains close to the Fed's maximum employment target. Hamak expects the unemployment rate to rise slightly this year, but will decline again soon. " On the inflation side, we missed our target even more, by a full percentage point. And we have missed our target for four and a half years in a row, and we expect to continue to deviate in the coming years. "