Federal Reserve's Hammack calls for continued interest rate hikes, inflation risks persist.

Cleveland Fed President Hammack said U.S. interest rates need to rise further to bring inflation back to the Fed's 2% target. In an interview with Barron's, Hammack warned that despite higher bond yields, current monetary policy is still not restrictive enough. She favors smaller, more frequent rate hikes but is open on the timing of the next increase. "The economy needs further tightening." Hammack also warned that if inflation persists for an extended period, it could become entrenched in consumer and business expectations, making it harder for the Fed to restore price stability.