Beth Hammack of Cleveland Fed on interest rates, inflation and prices

The president of the Cleveland Federal Reserve, Beth Hammack, said on Monday that the American central bank is faced with challenges while trying to balance the fight against obstinate inflation or job protection.

“As for inflation at the moment, I am continuing to worry about where we are from the point of view of inflation,” Hammack told “Squawk Box Europe” of CNBC.

“We miss our mandate on the side of inflation, of our 2%goal, for more than four and a half years and I continue to see that we have a pressure in inflation both in the title, in the heart, and in particular where I worry, I see it in the services,” she added.

When asked if it was an error for the federal reserve to reduce interest rates given the economic backdrop, Hammack described it as “a difficult period for monetary policy”, saying that the American central bank was pressure on both sides of its mandate.

His comments come shortly after the stronger economic data than expected seem to have de -indeed Wall Street hopes for net monetary attenuation.

The Fed approved a drop in rate widely awaited earlier this month, reducing its reference loan rate by one quarter-percentage to a range of 4.00% to 4.25%, and reported two others on the way before the end of the year.

A robust batch of economic data because, however, prompted investors to resume their expectations for rapid rate drops.

American basic inflation was little changed in August, according to data published on Friday. The price index for personal consumer expenditure recorded a gain of 0.3% for the month, which puts the annual inflation rate to 2.7%, the trade service reported at the end of last week.

The exclusion of food and energy, the more the PCE’s basic price level is followed by 2.9% on an annual basis after an increase of 0.2% for the month.

Hammack previously suggested that it would hesitate to reduce interest rates until inflation remains a threat.

In fact, more recently, the president of the federal reserve Jerome Powell warned against a delicate path to come on interest rates.

“The short -term risks for inflation are tilted upwards and the risks for downward employment – a difficult situation,” Powell said on September 23 during a speech to the leaders of Providence, Rhode Island.

“Bilateral risks mean that there is no way without risk,” he added.

– Jeff Cox of CNBC contributed to this report.