Beth Hammack, president of the Federal Reserve Bank of Cleveland, said further interest rate hikes and tighter monetary policy are needed to curb inflation. She spoke at a Thursday event in Ohio, as reported by Bloomberg. The date of the event was not given.
Inflation far from target
Hammack said core inflation rose more than expected in the latest data. She argued that the disinflation process has effectively stalled. In her view, inflation is moving away from the 2 percent target rather than toward it. Hammack also said AI-related investment and data center construction are adding to demand pressure.
The Fed’s policy rate currently sits in a range of 3.75 to 4 percent, where it was held last month. Our market data put the federal funds rate at 3.88 percent as of 17:56 GMT on 12 November 2026. Hammack dissented at that meeting. She had favoured a 25 basis point hike.
A bigger move in view
Hammack has argued for smaller, more frequent rate moves. Governor Christopher Waller warned this week that a 50 basis point tightening could be considered in December. Hammack said such a step would only be needed if the central bank were behind the curve. She does not currently see that.
Hammack’s stance leans toward continued tightening in smaller steps.
Related: Logan says Fed needs at least two more rate hikes · Waller says Fed must follow through on rate hikes
Source: Federal Reserve | Data: FRED — St. Louis Fed
