Fed’s Hammack Says Inflation a Bigger Concern Than Labor Market

Federal Reserve Bank of Cleveland President Beth Hammack said monetary policy should continue putting downward pressure on inflation, which she says is too high and remains a bigger risk for the US central bank than labor-market weakness.

“I remain concerned about high inflation and believe policy should be leaning against it,” Hammack said Thursday in prepared remarks for an event at the Economic Club of New York.

Cleveland Fed President Beth Hammack.

Photographer: Victor J. Blue/Bloomberg

The Cleveland Fed chief said she estimates inflation won’t reach the Fed’s 2% target until a year or two after 2026, similar to the median estimate of the Fed’s 19 policymakers. That ...