Fed's Hammack: Input Cost Pressures Risk Entrenched Inflation Mindset

Fed's Hammack Warns of Inflation Mentality Risk Amid Input Cost Pressures

Fed official Hammack flagged persistent business input cost pressures and expressed concern over inflation expectations becoming embedded in behavior. This adds to the inflation narrative following yesterday's hot wage data and stronger Q3 GDP, keeping focus on whether the Fed will need to hold rates higher longer. Chair Warsh speaks later today.

https://x.com/FirstSquawk/status/2110840129657217276

Fed's Hammack: Deteriorating Inflation Expectations May Require Aggressive Action

Cleveland Fed President Beth Hammack warned that rising inflation expectations could force stronger monetary tightening. Speaking at Goldman Sachs in New York, she cautioned that persistent price pressures become harder to control if consumers and businesses expect elevated inflation ahead. USD strength likely; traders watch whether this shifts Fed rate-path expectations as PCE inflation remains the central decision driver.

https://x.com/DeItaone/status/2110846659743612964