The Globe and Mail reports in its Thursday edition that Federal Reserve Bank of Cleveland president Beth Hammack is worried about inflation. A New York Times dispatch to The Globe reports that the Fed has surpassed its 2-per-cent annual inflation target for about five years. The stabilizing labour market has reinforced Ms. Hammack's belief that the Fed does not need to rush into further rate cuts after three reductions last year. The escalating Middle East conflict poses a new inflation risk, Ms. Hammack said. Higher energy prices could lead to lasting inflation for the Fed while also reducing consumer demand, though the overall economic impact is still uncertain. The Fed is expected to keep rates steady at its March 17-18 meeting, as it typically avoids reacting to supply shocks. Raising rates to combat temporary inflation could harm the economy. Even during supply disruptions from President Donald Trump's tariffs, the Fed lowered rates three times in the latter half of last year to 3.5 per cent to 3.75 per cent. Ms. Hammack was initially skeptical of the cuts and is now even more hesitant to support further relief for borrowers, indicating she will oppose aggressive reductions proposed by Kevin Warsh this year.