Cleveland Fed President Hammack warns of 'challenging time' amid inflation worries

Inflation Concerns - Inflation has remained above the Federal Reserve's 2% target for over four and a half years [1][5] - The speaker expresses concern about persistent inflation, particularly within the services sector, such as insurance, suggesting it may not be solely attributable to tariff impacts [2] - The speaker forecasts inflation to remain above target for the next 1 to 2 years, not reaching the 2% objective until late 2027 or early 2028 [5] Monetary Policy Challenges - The Federal Reserve faces challenges in balancing its dual mandate of maintaining stable prices and maximum employment [3] - The labor market is considered broadly in balance, with the unemployment rate around 4% to 43% [3][4] - The speaker believes a restrictive policy stance is necessary to bring inflation back to the 2% goal [5]