Cleveland Fed President Beth Hammack warns against hasty removal of restrictive monetary policy due to persistent inflation above the 2% target. Despite recent rate cuts, she emphasizes the need for caution to prevent overheating in the economy. Unemployment rate at 4.3% is near maximum employment, but inflation remains a significant concern.

Hammack, a non-voting member, expresses worries about missing inflation targets for over four years. She believes staying restrictive is crucial to bring inflation back down. Fed officials project further rate cuts this year, but opinions are divided, with some seeing current rates as appropriate. Policymakers must consider the neutral rate of interest in decision-making.

Read more at Yahoo Finance: Fed’s Hammack still focused on inflation, calls for caution in easing policy