Fed's Hamark: Inflation may not meet targets until 2028, policy needs to remain restrictive.

On September 29, Cleveland Fed President Beth Hammack stated that inflation may remain above target levels until 2028, which is an important reason for her opposition to interest rate cuts. This policymaker pointed out in an interview with CNBC in Frankfurt that the Fed has not achieved the 2% inflation target for over four and a half years, and may not meet this target in the near future. "I continue to observe pressure in both overall inflation and core inflation, and I am particularly concerned about the inflation issue in the service sector," Hammack said. "My prediction is that inflation may still be above target in the next one to two years, and it may only truly fall back to the 2% target level around the end of 2027 or early 2028." Although several Fed officials acknowledged that the current impact of tariffs on prices is relatively mild, Hammack remains cautious and stated that she disagrees with some colleagues who view the impact of tariffs as a "one-time shock." "From an inflation perspective, I am still concerned about the current situation," she said. "I believe our policy does need to maintain a restrictive stance." (Jin10)