Cleveland Fed President Beth Hammack said that "insatiable" demand of AI infrastructure is fueling inflation. Should that scenario continue, and other factors putting pressure on prices don't let up, policymakers could raise interest rates, she told CNBC.
"We've got inflation that's too high, and it's been too high for the past five years," Hammack said. "When I look at policy, if that continues, it may mean that we need higher interest rates to bring inflation back down to target."
