Fed's Hammack: Fed May Need Higher Rates to Move Inflation Back to Target

Dow Jones06-30 23:31

1130 ET - Cleveland Fed President Beth Hammack says if higher inflation trends continue, the Fed may need to raise interest rates to restore inflation to target, citing robust consumer spending and short-term inflationary pressures from the AI data center buildup. Outside of higher energy prices, Hammack says during a CNBC interview, "When I look at that core inflation, that's been very elevated." Additionally, Hammack adds that she wants to see if consumer spending continues to hold up. "If it does, then that says to me that policy may not be restrictive enough to help us bring inflation back down," she says.(jessica.coacci@wsj.com)

(END) Dow Jones Newswires

June 30, 2026 11:31 ET (15:31 GMT)

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