Fed's Hammack warns about persistent US inflation

Cleveland Federal Reserve Bank President Beth Hammack reiterated in a recent interview that the US is still facing an 'inflation problem' that requires attention. She emphasized that while there has been progress in controlling price growth, the Federal Reserve should adopt a patient approach regarding potential interest rate cuts. Hammack's comments come as investors assess inflation trends and the Fed's monetary policy, especially in light of recent data indicating a slower increase in core prices. Despite some optimism about slowing inflation, underlying pressures remain, with significant price hikes in categories vital to households, such as car insurance and health services. The mixed economic indicators have led to cautious expectations regarding future rate reductions, particularly with uncertainties surrounding the incoming administration's fiscal policies. Overall, Hammack's views reflect the Fed's careful stance as it navigates ongoing inflation challenges.