[Cleveland Fed President says inflation is moving in the wrong direction and interest rates need to be more restrictive] On November 13th, Cleveland Fed President Beth Hammack reiterated her belief that interest rates need to be raised to combat inflation under the demand pressure brought about by artificial intelligence investment. "My expectation is that we need to shift policy to a restrictive stance to help inflation get back to the 2% target, which is critical," Hammack said Thursday at an event in Columbus, Ohio. "If we don't do this, I'm worried that inflationary thinking may start to take root." Hammack said that in the face of demand pressure brought about by the construction of data centers, the Federal Reserve has sufficient ability to respond. "When I weigh the factors, what I see is that inflation has been stubborn and persisting longer than I expected," she said. Underlying inflation, which excludes food and energy prices, rose more than expected in October. Hammack said the report showed progress on inflation had "really stalled." "The latest data I've seen shows that inflation is moving in the wrong direction. We are moving away from the 2% target, not moving towards it," she said. Hammack was one of two officials who dissented from the Fed's decision last month to keep interest rates unchanged in a range of 3.75% to 4%. At the time, she favored a 25 basis point rate hike.