Back to today’s briefing

Story perspectives

Cleveland Fed Urges Caution Amid Persistent Inflation Concerns

9/23/2025

47 6 Full Breakdown

Summary

Story summary

Cleveland Fed Beth Hammack urges caution in easing restrictions as inflation stays above target.
Unemployment is 4.3%, near maximum employment, but inflation remains a concern.
European Central Bank (ECB) awaits December forecasts to decide if rates hit 2%.
Christine Lagarde says inflation is under control; uncertainties persist over trade and fiscal policy.
Analysts forecast inflation staying below 2% through 2028.

History

Historical Context

The 1970s stagflation crisis, marked by high inflation exceeding 13% and unemployment, prompted the Federal Reserve, led by Chairman Paul Volcker, to raise interest rates to 20% in 1980. This response reshaped monetary policy, influencing current strategies as inflation remains above target and unemployment is at 4.3%, reflecting ongoing challenges in economic stability.

1 of 2

Story summary

Cleveland Fed Beth Hammack urges caution in easing restrictions as inflation stays above target.
Unemployment is 4.3%, near maximum employment, but inflation remains a concern.
European Central Bank (ECB) awaits December forecasts to decide if rates hit 2%.
Christine Lagarde says inflation is under control; uncertainties persist over trade and fiscal policy.
Analysts forecast inflation staying below 2% through 2028.

1 / 2