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Cleveland Federal Reserve President Beth Hammack told the National Association of Business Economics annual gathering on Monday that the central bank should prioritize fast, incremental adjustments to monetary policy to ensure a timely return to its 2 percent inflation target.
The voting member of the Fed's policymaking committee argued that a restrictive stance is currently appropriate given the inputs factoring into her reaction function.
Hammack emphasized that making smaller adjustments relatively quickly is preferable to waiting, which risks needing a larger course correction.
Her remarks indicate that additional interest rate hikes may be on the horizon, following September meeting minutes in which Fed officials signaled they could vote to raise rates again without specifying a timeline.
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