Hammack Flags Inflation Risks Amid US Supply Shocks

US Economy Under Scrutiny as Fed's Hammack Raises Inflation Concerns

The US economy is facing a heightened risk of an inflationary mindset, according to Federal Reserve Bank of Cleveland President Beth Hammack. Speaking at a conference hosted by the Cleveland Fed on Thursday, September 24th, 2026, Hammack warned that supply shocks can lead to an elevated risk of inflation.

Hammack stated that when the environment is more prone to shocks, or when those shocks arrive one after another in a period where inflation has been high for years, there's a greater risk that an inflationary mindset could take hold. This mindset refers to a situation where businesses and consumers begin to expect higher prices and adjust their behavior accordingly.