Investing.com -- Federal Reserve Bank of Cleveland President Beth Hammack said Tuesday that the central bank may need to act soon to combat inflation pressures that are already too high and are on a worrisome trend.

"Based on the data, I'm more concerned about the growing risks of persistently elevated inflation than the risks to full employment and also that monetary policy may not be sufficiently restrictive to bring inflation down to 2 percent," Hammack said in a speech before the City Club of Cleveland.

Hammack warned that delaying action could prove costly. "If we wait for definitive evidence that high inflation has become embedded in the economy, it may require larger policy adjustments, at greater cost," she said.

The Cleveland Fed president said current policy remains appropriate for now given economic uncertainties. "It's reasonable to keep rates steady given the uncertainties around the economic outlook. But if recent trends continue, it may soon be appropriate to act," she said.

The Federal Open Market Committee meets June 16-17 in a session expected to keep the interest rate target steady at between 3.5% and 3.75%. Hammack holds a vote on the FOMC this year.

The meeting will be the first under Kevin Warsh's leadership. Warsh came to office advocating for rate cuts, a position that appears at odds with the current environment where price pressures have been mounting after standing above the Fed's 2% inflation target for years.

Inflation has intensified due to the U.S.-Israeli war against Iran, which has disrupted global energy flows. The situation has pushed inflation higher from already elevated levels, prompting speculation among Fed officials about potential rate increases if inflation relief does not materialize.

Interest rate futures markets are pricing in a rate increase at some point ahead.

Hammack said inflation is being driven by electricity costs, health insurance and software. She noted that data shows relatively broad-based price pressures across goods and nonhousing services.

"There is a growing risk that inflation could remain elevated if energy costs do not come down quickly and if businesses feel they have no choice other than to raise prices," Hammack said.

The broader economy is showing resilience and the labor market is stable with unemployment near full employment, Hammack said. She added that measures of financial conditions are supportive of growth rather than holding it back.