Cleveland Fed President Beth Hammack says rates are not yet high enough and that higher yields are no substitute for hikes, citing shop-floor demand. The 10-year Treasury yield ended Friday at 5.24% ahead of Wednesday's September CPI, where headline is forecast at 0.6%.
Cleveland Fed President Beth Hammack told the Wall Street Journal that pricing power and a sturdy economy still leave the policy rate too low heading into this week's CPI report. Source
Cleveland Fed President Beth Hammack told the Wall Street Journal on Sunday that the policy rate is not yet high enough to tame inflation. Her evidence came from a machine shop, not the consumer price index. On a tour of Jergens in Cleveland, reported by the Journal's Nick Timiraos, price had fallen to third on customers' lists behind quality and speed. Aerospace orders are surging. Tariffs have made a Chinese rival's parts costlier. The company is preparing the largest machine-tool purchase in its 84-year history.
