Cleveland Federal Reserve Bank President Beth Hammack told Fox Business that she expects the overall inflation rate to close 2026 around 3% and to fall to the mid‑twos, roughly 2.5%, during 2027. She added that the Fed’s primary price gauge was 3.7% year‑over‑year in July, well above the central bank’s 2% target, and that the institution is likely to miss that target through next year.
Hammack reiterated her view that a further rate increase will be required to curb elevated price pressures. She said recent inflation data have aligned with her expectations and highlighted that the labour market remains broadly balanced. The president emphasized that Federal Reserve policy must stay restrictive and that she approaches each policy meeting with an open mind, remaining flexible on the timing of future decisions.
