Fed's Harmer: More Aggressive Rate Hikes May Be Needed If Inflation Expectations Become Entrenched

On October 16, Cleveland Fed President Lorie Logan, a hawkish FOMC voter, warned that if businesses and households come to believe high inflation will persist for the long term, the Federal Reserve may be forced to take stronger measures. She noted her preference for implementing modest rate hikes early on to prevent inflation expectations from becoming entrenched, which would later necessitate aggressive policy tightening.