world-economy

Fed Officials Divided on Whether Rate Policy Is Slowing Economy

Federal Reserve officials disagree on whether current interest-rate policy is effectively restraining economic activity and cooling inflation. Boston Fed President Susan Collins said the central bank's current policy setting is still mildly restrictive, restraining the economy and helping slow inflation. Cleveland Fed President Beth Hammack countered that interest rates are not sufficiently constraining growth, urging policymakers to act more aggressively as inflation persists above the 2% target. The disagreement underscores tension within the Fed over the appropriate policy path. Inflation continues running above the central bank's 2% goal, prompting some officials to call for additional measures. The debate reflects uncertainty about whether current monetary conditions are adequately restrictive to bring price pressures under control.