Cleveland Fed President Beth Hammack said inflation pressures remain broad-based, with businesses calling for policy action and consumers reporting a growing sense of despair as they struggle to cover expenses. Firms cited higher energy and insurance costs, continuing supply-chain disruptions, and added pressure linked to the expansion of artificial intelligence data centres.
Persistent Inflation and Its Drivers
She said growth figures remain solid and consumer spending is stable. Hammack drew on economic data as well as conversations with business and community leaders across the Fourth Federal Reserve District, arguing inflation is not being driven by a single source. Persistently high inflation was described as the bigger concern.
