Cleveland Federal Reserve President Beth Hammack says inflation remains above the Fed’s target and that ongoing spending on artificial intelligence could be adding to price pressures. In comments reported by CNBC and Quartz, Hammack points to strong and potentially “insatiable” demand for AI-related infrastructure as a driver of higher costs. She argues that the inflation environment has persisted for years and remains a concern for policymakers. Hammack also warns that additional interest-rate increases may be necessary if inflation does not move back toward the Fed’s goal. The outlets describe her remarks as emphasizing the possibility that AI investment could sustain inflationary forces, rather than being a purely temporary factor. Her comments align with the broader view that the Fed must weigh incoming inflation data and economic conditions when deciding whether to adjust policy. Overall, both reports present Hammack as highlighting AI infrastructure spending as one contributor to inflation and signaling that rate hikes remain an available tool if inflation does not fall as expected.