Hammack Flags Upside Inflation Risks, Dollar Bulls Remain Alert

Cleveland Federal Reserve President Beth Hammack warned on Thursday that inflation remains elevated in the United States, with price pressures persisting despite solid output and demand.

Hammack emphasized that price stability is the responsibility of central banks and noted that inflation is currently above target. According to Hammack, risks surrounding inflation are tilted to the upside, while supply shocks represent a notable challenge for monetary policy.

The Cleveland Fed President also warned about the consequences of allowing above-target inflation to persist, stating that the longer inflation remains elevated, the harder it becomes to bring price growth back toward the central bank's target.