Fed's Hammack: Need to be cautious in removing policy restriction

Sept 22 (Reuters) - The Federal Reserve needs to be "very cautious" in removing restrictive monetary policy with inflation still above the central bank's 2% target and remaining persistent, Cleveland Fed President Beth Hammack said on Monday.

"I think we are only a short distance to neutral, and it worries me that if we remove that restriction from the economy, things can start overheating again," Hammack said.