A top Federal Reserve official said Friday that stubbornly high inflation is her bigger concern right now, warning that firms are urging the US central bank to act against rising prices.
"Inflation is too high," Cleveland Fed President Beth Hammack wrote in a social media post, in a signal that she could back higher interest rates at future policy meetings.
Hammack, who is a voting member of the Fed's rate-setting committee this year, said her conversations with business and community leaders indicate inflation is coming from more than one source.
"For the first time in my tenure, I'm hearing from businesses who say they think we need to take action to curb inflation, and from consumers who can't make ends meet about a growing sense of despair," Hammack said, calling the inflation "broad-based."
The Fed has a dual mandate of maintaining stable prices and low unemployment, and Hammack said there is "no conflict" between the bank's economic goals right now.
"Persistently high inflation is the bigger concern," she said.
This signals that Hammack could push back on keeping interest rates unchanged at the Fed's policy meeting later this month.
The Federal Open Market Committee is due to meet July 28-29.
The bank typically keeps interest rates higher to rein in inflation, or lowers rates to boost the economy.
While consumer inflation in June cooled to 3.5 percent, levels have remained above the Fed's longer-term two-percent target for around five years, fueling concern.
A day prior, Dallas Fed President Lorie Logan indicated her support for higher interest rates to curb inflation.
