Cleveland Fed President Hammack Warns Inflation Risks Are Tilted to the Upside as Supply Shocks Complicate Policy

Cleveland Federal Reserve President Beth Hammack warned on September 24 that inflation risks remain tilted to the upside, citing supply shocks as a notable challenge for monetary policy. She cautioned that the longer inflation stays elevated, the harder it becomes to return it to the Fed's 2 percent target, language consistent with her previous calls for rate increases.

Hammack's remarks landed against a broader backdrop of Fed uncertainty. Reuters reporting on the same day noted the Fed is again hoping for a pain-free disinflation, even as history shows rate-hiking cycles have frequently weighed on U.S. stock prices. A Richmond Fed survey highlighted that CFOs have shifted their primary worry from inflation itself to the direction of monetary policy, a sign that the rate environment is now the dominant concern in corporate boardrooms.

The comments reinforce Hammack's standing as one of the more hawkish voices on the Federal Open Market Committee. She was among three dissenters at the July 2026 meeting who favored a quarter-point rate increase at a time when the Fed held its target range steady at 3.5 to 3.75 percent. Core PCE inflation has remained stuck well above the 2 percent goal, and supply-driven pressures in energy and other sectors have complicated the path back to target.