Core Viewpoint - The U.S. Federal Reserve must maintain a restrictive monetary policy to achieve its 2% inflation target, as stated by Cleveland Fed President Beth Hammack [1][2]. Group 1: Monetary Policy Stance - The Federal Reserve is facing challenges on both sides of its mandate, which includes managing inflation and maximizing employment [1]. - Hammack emphasizes the need for a restrictive policy stance to bring inflation back to the target level [2]. - Hammack, known for her hawkish views, anticipates that inflation will remain above the target for the next 1-2 years [2]. Group 2: Inflation Concerns - Hammack highlights the need to monitor pressures in the services sector, such as insurance, which contribute to "super core" inflation, indicating that inflationary pressures may not solely stem from tariff impacts [3]. - She previously indicated that the Fed should be cautious in removing restrictive monetary policies, given that inflation remains persistent and above the 2% target [3].