Fed's Hammack says muted tariff impact on inflation may not last

By Michael S. Derby

Sept 29 (Reuters) - Federal Reserve Bank of Cleveland President Beth Hammack said on Monday that the hit on inflation from President Donald Trump's trade tariffs has thus far been underwhelming

The impact of the import tax hikes "definitely has been less than I would have anticipated when the tariffs were first announced," Hammack said at a European Central Bank event.

"We have seen that businesses have been ... more cautious about passing on some of those costs, and they've been trying to absorb some of it from my discussions with businesses," Hammack said. "That's not going to last forever. They're going to start pushing that forward."