Fed's Hammack: policy will need to move to a restrictive stance to curb inflation

Cleveland Fed President Beth Hammack said in Zurich on Nov. 5 that policy will need to become restrictive to bring inflation back to 2%. She prefers getting there through more frequent, smaller adjustments.

In this brief: 3 sections 1 min read

- "Monetary policy will need to move to a restrictive stance to bring inflation back to 2% in a timely manner."
- Prefers "more frequent smaller adjustments when possible."
- Inflation has been above the 2% target for over half a decade.
- The Fed raised rates in September and held them on Oct. 28.
- Hammack dissented at that meeting in favor of a hike.
- Next meeting: Dec. 8-9.
- More hikes would tend to keep high-yield savings and CD rates firm or rising. Hammack is one voice on the committee, and market odds moved after the next day's jobs report.

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