U.S. Federal Reserve Official Calls for Smaller, More Frequent Rate Increases

Beth Hamk, president of the Federal Reserve Bank of Cleveland, has called for adopting smaller and more frequent adjustments to interest rates, arguing that this approach helps keep inflation expectations balanced.

This came in a speech text that Hamk prepared for her address at the annual meeting of the National Association for Business Economics in Cleveland, where she said she prefers "making relatively smaller adjustments more quickly" rather than risking delay and resorting to larger course corrections later.

Hamk did not signal that she would support a rate hike specifically in October. Federal Reserve officials voted unanimously last month to raise interest rates, as part of efforts to combat inflationary pressures that have been fueled by rising energy prices and growing demand linked to artificial intelligence.

Hamk, who holds a voting right in monetary policy decisions this year, emphasized that inflationary pressures extend beyond energy prices, citing rising tariffs and demand stemming from artificial intelligence as two additional factors.