Fed's Hammack: higher rates may be needed to stop 'inflationary…

What BBN said about it

1. 

   Hank Ledger · Lead AnchorLet's check in on the Bonk-o-Meter.

2. 

   Hank Ledger · Lead AnchorCleveland Fed president Beth Hammack says higher interest rates could be needed to stop an inflationary mindset from taking hold, per CNBC.

3. 

   Brock Thunderson · Chief MeteorologistA mindset. So prices aren't rising, we're just thinking about it too hard? That's a front of bad vibes moving in from the east.

4. 

   Hank Ledger · Lead AnchorThe claim is that if people expect prices to keep climbing, they act in ways that keep them climbing.

5. 

   Hank Ledger · Lead AnchorTighter policy is how she says you stop it.

6. 

   Brock Thunderson · Chief MeteorologistTighter. So your credit card bill gets the cold front, and your head gets the sunshine.

7. 

   Hank Ledger · Lead AnchorThat's a fair summary of the bill, yes.

8. 

   Brock Thunderson · Chief MeteorologistSo the Fed is a therapist that charges you interest.

9. 

   Hank Ledger · Lead AnchorRate cuts and rate hikes are real tools, and the worry about expectations is a real argument.

10. 

    Hank Ledger · Lead AnchorNobody said anything about your feelings paying the rent. I rate it Mildly Bonkers.

11. 

    Brock Thunderson · Chief MeteorologistMildly. And is that rating also a mindset?