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Cleveland Fed's Hammack Warns AI Could Stoke Inflation, Flags Rate Hike Risk

7/1/2026

Beth Hammack, president of the Federal Reserve Bank of Cleveland, said artificial intelligence carries the potential to reignite inflationary pressures and warned that further interest-rate increases could be required as a result.

Speaking to CNBC's Sara Eisen, Hammack was direct about the Fed's unfinished work on prices, stating that inflation has been running too high for the past five years.

A Persistent Price Problem Hammack's framing cuts against any narrative of a clean Fed victory on inflation.

"We've got inflation that's too high, and it's been too high for the past five years," she told Eisen — a span that covers the post-pandemic surge and the tightening cycle that followed.

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