- Federal Reserve Bank of Cleveland President Beth Hammack warned that the US economy faces a series of supply shocks that risk causing an inflationary mindset to take hold.
- Hammack said that when shocks arrive in a period when inflation has been elevated for years, there is a greater risk that an inflationary mindset could take hold.
- She spoke at a conference hosted by the Cleveland Fed on Thursday.
Quotes
“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.”