Hammack Warns Inflation Expectations Threaten US Economic Planning

According to Federal Reserve Bank of Cleveland President Beth M. Hammack, persistent inflation is complicating U.S. economic planning.

Hammack warned that prolonged above-target inflation could alter expectations across the economy, influencing wages and prices in ways that impede progress toward the Fed's goal.

The Federal Open Market Committee (FOMC) had previously raised the federal funds target range by 25 basis points to 3.75%-4% on September 16, with all 12 voting members supporting the move.