Cleveland Fed President Beth Hammack stated that U.S. interest rates need to rise further to bring inflation back toward the Fed's 2% target. In an interview with Barron's, Hammack warned that current monetary policy is not restrictive enough, despite rising bond yields. She favors smaller, more frequent rate hikes, but remains open on the timing of the next increase, adding that "more tightness is needed in the economy." Hammack also warned that prolonged inflation could become embedded in consumer and business expectations, making it harder for the Fed to restore price stability.