{
  "id": 9562365,
  "title": "Fed’s Hammack warns persistent inflation could make return to target harder",
  "url": "https://urgent.news/2026/09/24/feds-hammack-warns-persistent-inflation-could-make-return-to-target",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-24T13:23:44.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/feds-hammack-warns-persistent-inflation-could-make-return-to-target-harder-202609241323"
  },
  "original_language": "en",
  "account": "Cleveland Fed President Beth Hammack cautioned on Thursday that escalating inflation in the United States could complicate the Federal Reserve's effort to return to its target. The Central Bank President stressed that sustaining elevated price pressures would make the Fed's task more challenging. Speaking on monetary policy, Hammack highlighted that price stability falls under the responsibility of central banks and mentioned that inflation remains elevated despite strong output and demand, as per Reuters. The Fed President noted that risks associated with inflation lean towards the upside, with supply shocks posing a significant challenge for monetary policy currently. Hammack also warned about the ramifications of allowing inflation above the target to persist. According to the policymaker, the longer inflation stays high, the more difficult it becomes to bring price growth back to the central bank's target. Hammack's speech scored 7.4/10 on the FXS Speechtracker, a slightly softer tone compared to the historical average of 7.6/10 but still conveying a hawkish attitude. The FXS Fed Sentiment Index dropped by 0.46 points to 148.18, indicating a minor decline in hawkishness relative to recent communications. However, with the index still well above the neutral 100 level, the Fed remains in a clearly hawkish stance despite the slight reduction in tone, and the combination of the high index levels and strong FXS Speechtracker score continues to support a constructive bias for the US Dollar. The US Dollar (USD) showed minimal reaction to Hammack's remarks, with the US Dollar Index (DXY) gaining 0.14% on the day and trading around 101.25. Expectations for further Federal Reserve tightening are already high, potentially diminishing the immediate impact of Hammack's comments. Currently, there is about a 71% probability of another rate hike at the October meeting, according to CME FedWatch, up from around 55% a week earlier. Monetary policy in the US is guided by the Federal Reserve (Fed), which has two mandates: achieving price stability and fostering full employment. The Fed primarily adjusts interest rates to meet these goals. When prices rise too rapidly and inflation exceeds the Fed's 2% target, the Fed raises interest rates, increasing borrowing costs throughout the economy. This leads to a stronger US Dollar (USD) as it becomes more appealing for international investors. Conversely, when inflation falls below 2% or unemployment is too high, the Fed may lower interest rates to encourage borrowing, which puts downward pressure on the Greenback. The Federal Reserve (Fed) conducts eight policy meetings annually, where the Federal Open Market Committee (FOMC) evaluates economic conditions and makes monetary policy decisions. The FOMC comprises twelve officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four regional Reserve Bank presidents, rotating on a one-year basis. In exceptional circumstances, the Federal Reserve could implement Quantitative Easing (QE), a non-standard policy measure used during crises or when inflation is extremely low. This involves the Fed printing more Dollars and purchasing high-grade bonds from financial institutions. QE typically weakens the US Dollar. Quantitative tightening (QT) is the opposite process, where the Federal Reserve stops buying bonds and does not reinvest the principal from maturing bonds to purchase new ones. QT is usually positive for the value of the US Dollar.",
  "summary": "Cleveland Federal Reserve (Fed) President Beth Hammack warned on Thursday that inflation remains elevated in the United States (US), stressing that persistent price pressures could make the Fed’s task increasingly difficult.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Investing.com",
        "title": "Fed’s Hammack warns inflation pressures remain tilted to upside",
        "url": "https://urgent.news/2026/09/24/feds-hammack-warns-inflation-pressures-remain-tilted-to-upside",
        "published": "2026-09-24T13:18:41.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}