Fed’s Hammack Says Inflation Too High, Must Be Cautious Easing

Federal Reserve Bank of Cleveland President Beth Hammack said she remains laser-focused on inflation and officials should be cautious about interest-rate cuts to avoid overheating the economy.

Hammack said there are signs the labor market is still robust despite a recent slowdown in job growth, including low layoffs and a low unemployment rate. Inflation, meanwhile, has been above the Fed’s 2% target for more than four years and may not return to the central bank’s goal for another couple of years, she said.

“I think that we should be very cautious in removing monetary policy restriction,” Hammack said Monday during ...