Federal Reserve Bank of Cleveland President Beth Hammack said inflation is likely to stay above the central bank’s 2% target through the end of 2026, with only gradual progress expected in 2027.
Speaking on Fox Business, Hammack projected year-end inflation around 3% for 2026, followed by a slow decline to the mid-2% range in 2027. The Fed’s primary inflation measure stood at 3.7% year-over-year in July, underscoring the persistence of elevated price pressures.
Hammack emphasized the need for further policy tightening to address inflation, noting that recent data aligns with her expectations. She described the labor market as broadly balanced and stressed that monetary policy must remain restrictive to ensure inflation continues trending toward target.
She also reiterated flexibility in her approach to upcoming Fed meetings, stating that each decision will be made with an open mind based on incoming data.
