Fed’s Hammack Is Still Worried About Outlook for US Inflation

Federal Reserve Bank of Cleveland President Beth Hammack has expressed concerns about the outlook for U.S. inflation. According to Hammack, inflation could remain above the central bank's 2% target until 2028, which is a worrying prospect. Hammack's comments suggest that she is arguing against interest-rate cuts, as she believes that such actions could potentially exacerbate the inflation problem. The Fed has been grappling with high inflation for an extended period, and Hammack's remarks indicate that the central bank may need to maintain its current monetary policy stance to bring inflation under control. The article highlights the ongoing challenges facing the Fed as it seeks to balance the need to curb inflation while also supporting economic growth. Hammack's concerns about the long-term inflation outlook underscores the complexity of the current economic environment and the difficult decisions the central bank must make in the months and years ahead.