Cleveland Federal Reserve President Beth Hammack expressed concerns about inflation and the challenges the U.S. central bank faces in balancing fighting inflation and protecting jobs. She mentioned missing the 2% inflation objective for over four-and-a-half years and highlighted pressure in both headline and core inflation, particularly in services.

Hammack discussed the difficulty of cutting interest rates given the economic backdrop, describing it as a challenging time for monetary policy. Recent stronger-than-expected economic data have tempered Wall Street’s hopes for significant monetary easing, following the Fed’s recent rate cut and signaling of two more before year-end.

Investors have dialed back expectations for rapid rate cuts after a robust batch of economic data post-Fed rate cut. The Fed had lowered its benchmark overnight lending rate by a quarter percentage point to 4.00%-4.25% earlier this month, with two more cuts anticipated this year. This story is developing, stay tuned for updates.

Read more at CNBC: Cleveland Fed’s Beth Hammack on interest rates, inflation and tariffs