Federal Reserve (Fed) Bank of Cleveland President Beth Hammack said in a LinkedIn post on Friday that inflation pressure remains broad-based, with businesses calling for policy action and consumers expressing a growing sense of despair as they struggle to cover their expenses. Hammack noted that companies are facing higher energy and insurance costs, supply-chain disruptions, and pressure related to the expansion of artificial intelligence data centers.

Key takeaways:

Businesses believe action is needed to curb inflation, while consumers who cannot make ends meet are increasingly despairing.

Business leaders point to energy costs and supply-chain disruptions as contributing factors.

Companies are also facing pressure from insurance costs and the buildup of AI data centers.

Growth figures remain solid, while consumer spending is stable.

Economic data are considered alongside conversations with business and community leaders across the Fourth Federal Reserve District.

Inflation is not coming from a single source and appears to be broad-based.

Persistently high inflation is the bigger concern.