The head of the Cleveland Fed warns: inflation remains a threat to the US economy

The head of the Cleveland Fed, Beth Hammack, said that the US Central Bank is facing difficulties in combating inflation while preserving jobs. She noted that the Fed's goal of keeping inflation at 2% has remained elusive for more than four and a half years, and inflationary pressures remain at both general and baseline levels.

Recent strong economic data has dampened investors' expectations for a rapid reduction in interest rates. At the beginning of the month, the Fed reduced the base rate by 0.25 percentage points to a range of 4%-4.25%, hinting at the possibility of two additional decisions before the end of the year. However, recent figures have forced a revision of forecasts.

According to the U.S. Department of Commerce, core inflation rose 0.3% in August, reaching an annual rate of 2.7%. This confirms the stability of inflationary pressure, despite the Fed's measures.

Earlier, on September 23, Fed Chairman Jerome Powell warned of risks: inflation is rising in the short term, and threats to employment are decreasing, which creates a difficult situation for the implementation of monetary policy.