Cleveland Fed President Predicts Inflation to Remain Above Target Until 2028

According to BlockBeats, Cleveland Federal Reserve President Beth Hammack has expressed concerns that inflation may remain above the target level until 2028, which is a key reason for her opposition to interest rate cuts. In an interview with CNBC in Frankfurt, Hammack highlighted that the Federal Reserve has not achieved its 2% inflation target for over four and a half years and may continue to fall short in the foreseeable future. Hammack noted ongoing pressures in both overall and core inflation, with particular concern about inflation in the services sector. She predicted that inflation might stay above the target for the next one to two years, potentially only returning to the 2% target by late 2027 or early 2028. While several Federal Reserve officials acknowledge that the impact of tariffs on prices is relatively mild, Hammack remains cautious. She disagrees with some colleagues who view the tariff impact as a "one-time shock." "From an inflation perspective, I am still concerned about the current situation," she stated, emphasizing the need for the Fed's policy to maintain a restrictive stance.