Fed Could Raise Interest Rate, Official Says

Beth Hammack, president of the Federal Reserve Bank of Cleveland, said in an interview with the AP that her general preference is for the Fed to keep its benchmark interest rate unchanged for awhile. The Fed might have to cut its rate if higher gas prices caused the economy to slow and unemployment to rise, she said; but if inflation remained elevated, a rate hike could be needed. Minutes of the Fed's meeting in late January said that several members of the rate-setting committee supported altering the post-meeting statement to reflect the possibility of "upward adjustments" to rates.

Author: Bob Cronin

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