Cleveland Fed president warns rate hikes could be on the table 'if recent trends continue' with inflation
Key takeaways
- “For today, it’s reasonable to keep rates steady given the uncertainties around the economic outlook,” Hammack said in a speech in Cleveland. “But if recent trends continue, it may soon be appropriate to act.”
- Based on the data, Hammack said she’s more concerned about the growing risks of persistently elevated inflation than the risks to full employment.
- Read more: How jobs, inflation, and the Fed are all related
Cleveland Fed president warns rate hikes could be on the table 'if recent trends continue' with inflation Jennifer Schonberger · Senior Reporter Tue, June 2, 2026 at 8:49 PM GMT+7 1 min read Cleveland Fed president Beth Hammack warned Tuesday that it may soon be time to raise interest rates because of concerns that rising prices could get entrenched.
“For today, it’s reasonable to keep rates steady given the uncertainties around the economic outlook,” Hammack said in a speech in Cleveland. “But if recent trends continue, it may soon be appropriate to act.”
Based on the data, Hammack said she’s more concerned about the growing risks of persistently elevated inflation than the risks to full employment. She also noted that interest rates may not be sufficiently restrictive to bring inflation down to 2%.