Fed’s Hammack Says Shocks Risk an Inflationary Mindset

Federal Reserve Bank of Cleveland President Beth Hammack stated Thursday that successive supply shocks could lead to an inflationary mindset among consumers and businesses. Hammack said at a Cleveland Fed conference that "when the environment is more prone to shocks, or the shocks arrive one after another in a period when inflation has been elevated for years, there's a greater risk that an inflationary mindset could take hold." She did not specify which shocks she was referencing.

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