Fed's Hammack warns inflation pressures remain tilted to upside
TLT•Cleveland Fed President Beth Hammack said inflation remains elevated and the outlook is highly uncertain, with risks tilted to the upside. She warned that prolonged high inflation could make returning it to target more challenging and costly.
1. Inflation outlook
Hammack said U.S. output is growing at a solid pace and the labor market remains close to her definition of maximum employment, but inflation remains elevated. She said the inflation outlook is highly uncertain, with risks tilted to the upside, and that the longer high inflation persists, the more challenging and costly it can be to bring it back down.
