Fed's Hammack says rate hike may be needed if inflation persists

Investing.com -- Cleveland Federal Reserve President Beth Hammack said Friday that the labor market is roughly balanced and near full employment, but rising inflation may require the central bank to raise interest rates soon.

The unemployment rate of 4.3% "is right around my definition of full employment," Hammack wrote in a LinkedIn post following the May jobs report, which showed stronger-than-expected job gains for the month.

Hammack said inflation presents a contrasting picture. "It's high, moving higher...If recent trends continue it may soon be appropriate to act," she wrote.

The Fed official added that it is reasonable to keep interest rates steady for now, but the central bank may need to take action against high inflation if current trends persist.

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