Recent news shows that the challenges facing the U.S. economy due to long-term inflation pressures may be more severe than expected. In a recent interview in Frankfurt, Cleveland Fed President Loretta Mester made thought-provoking remarks, indicating that inflation rates may remain above the target level set by the Fed for the next few years.

Harmak emphasized that the Fed has failed to achieve the 2% inflation target for more than four and a half years consecutively. Even more concerning, she predicts that this situation is unlikely to change in the short term. 'Both overall inflation and core inflation are facing persistent upward pressure,' Harmak stated, 'especially the inflation problem in the service industry, which worries me greatly.'

According to Hamak's forecast, the inflation rate may remain above the target level for the next one to two years. She estimates that it may only be by the end of 2027 or early 2028 that the inflation rate could truly fall back to the 2% target level. This timeframe far exceeds the expectations of many market participants and economists.

It is worth noting that Hamak holds a cautious attitude towards the current economic situation. While some colleagues believe that the impact of tariffs on prices is temporary, she disagrees with the view of considering this impact as a 'one-time shock.' On the contrary, she emphasizes the complexity and persistence of the inflation issue.

Based on these considerations, Hamak has clearly stated her support for maintaining a restrictive monetary policy stance. She believes that, given the current inflation situation, the Fed needs to remain vigilant and continue to take necessary measures to control price increases.

This perspective will undoubtedly have a profound impact on the financial markets. Investors and businesses may need to reassess the long-term economic outlook and adjust their strategies accordingly. At the same time, this also provides an important signal to the public that resolving the inflation issue may require a longer period and more sustained efforts.

As the global economic environment continues to change, the direction of Fed policy will remain a focal point of concern for various sectors. Hamak's remarks not only reflect the serious views within the Fed regarding the inflation issue but also highlight the complex challenges faced by monetary policy makers. In the days ahead, finding a balance between controlling inflation and maintaining economic growth will be an important topic that the Fed needs to explore continuously.