WASHINGTON, D.C. — Beth Hammack, President of the Federal Reserve Bank of Cleveland, said, "Pricing pressures are broadening rather than fading, and consumers are expressing despair over persistently higher prices." She added, "The longer that high inflation persists, the more challenging and costly it can be to bring it back down."

Neel Kashkari expressed concern that high inflation could become entrenched and projected multiple rate hikes. Lorie Logan expressed pessimism regarding inflation trends at the meeting.

Why It Matters

The Federal Reserve's inflation policy target is 2%. Over the past year, goods and services monitored by federal agencies have registered price increases, with inflation remaining above the target. The Consumer Price Index (CPI-U, all items) was 333.918 in July 2026. The next meeting of the Committee is scheduled for September 15–16, 2026.

Timeline

Federal Reserve interest rate increases began in March 2022. Jerome Powell referred to policy lags 17 times during his press conference in November 2022. The three-month annualized average of the Consumer Price Index since May 2026 is 0.49%.

The Consumer Price Index for June 2026 was 3.5%. The monthly Producer Price Index was negative in June and July 2026. The Consumer Price Index for July 2026 was 3.4%.

What's New

Research titled "Do Federal Reserve Bank Presidents Have a Regional Bias?" was published in 2014. A study titled Do Federal Reserve presidents communicate with a regional bias? Was published in the Journal of Macroeconomics. The Federal Open Market Committee approved a statement noting that inflation remains elevated relative to the Committee's 2 percent goal.

The next meeting of the Committee is scheduled for September 15–16, 2026. The Federal Open Market Committee has maintained its benchmark interest rates at 3.5% to 3.75%.

How Sources Differ

Federal Open Market Committee meeting minutes state that three regional Federal Reserve Bank presidents voted to increase interest rates at the latest Federal Open Market Committee meeting. Federalreserve.gov states that the Federal Open Market Committee approved the following statement for release by a 9 – 3 vote, which noted that inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. Federalreserve.gov states that the Federal Open Market Committee approved the following statement for release by a 9 – 3 vote, which noted that inflation remains elevated relative to the Committee's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. Federal Open Market Committee meeting minutes state that Lorie Logan expressed pessimism regarding inflation trends at the latest Federal Open Market Committee meeting.