By Michael S. Derby

NEW YORK (Reuters) – Federal Reserve Bank of Cleveland President Beth Hammack said Thursday that inflation pressures have been easing but have yet to return to the required levels.

> "We have made good progress, but inflation is still running above the Federal Open Market Committee's 2% objective," Hammack said at a conference addressing inflation issues held by her bank. She refrained from commenting on future monetary policy but acknowledged that Fed rate hikes between spring 2022 and summer 2023 contributed to lowering inflation.

Echoing recent statements from Fed Chairman Jerome Powell, Hammack, the newest regional Fed bank president, remarked that while there has been progress in reducing price pressures, it is premature to declare the job complete.

Hammack indicated that "it has not been a straight line of progress towards returning inflation to our 2% goal," and noted that despite an uneven start to the year, "in recent months, the readings have generally improved since its peak in June of 2022."

The policymaker also emphasized that "remarkably, this disinflation process has progressed with notable strength in the labor market and the economy in general."