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Cleveland Federal Reserve President Beth Hammack cautioned on Friday that a sustained inflationary mindset among businesses could extend high price levels. She noted that firms increasingly factor inflation into cost structures, potentially embedding higher prices into the economy. Hammack said the Federal Reserve is likely to keep rates steady for a considerable period as it monitors this trend. The comment follows the Fed’s recent stance that rates may remain on hold, reflecting concerns that elevated inflation could become entrenched. Her remarks underscore the central bank’s focus on preventing a shift in business pricing behavior that could undermine long‑term price stability. The warning highlights the delicate balance the Fed must maintain between supporting growth and curbing inflationary pressures that could ripple through consumer spending and investment decisions.

By Shahbaz A. | JQJO News