Fed's Hammack Warns Inflation Risks Remain Tilted to the Upside

Cleveland Fed President Beth Hammack delivered hawkish remarks warning that inflation risks remain tilted to the upside and the economic outlook faces high uncertainty. Speaking ahead of the Inflation: Drivers and Dynamics Conference, she stressed that price stability is the central bank's core duty and warned that prolonged elevated inflation complicates returning to target amid robust output demand and recurring supply shocks. Following her comments, market expectations for an October interest rate hike stood at roughly 66%, having fluctuated between 50% and 74% earlier in the week, reinforcing expectations for a sustained restrictive monetary policy stance.