To bring inflation back to 2%, Hammack is pointing toward more tightening. Beth Hammack, president of the Federal Reserve Bank of Cleveland and a 2026 FOMC voting member, said at the National Association for Business Economics’ annual meeting that a restrictive monetary policy stance is appropriate and that further rate hikes may still be needed. The timing is uncertain, but any moves would be small and more frequent. Markets are accustomed to interpreting talk of small, more frequent moves as a sign that tightening is nearly over.
🏛️ 她点的两个条件谁先动，先发群里，进来对着看
That interpretation could be turned on its head when businesses can no longer stop passing on higher costs. The risk Hammack highlighted is rising input costs for businesses and more companies passing price increases on to consumers. The biggest concern, she said, is that households and businesses are becoming more accepting of higher inflation; there are already some signs of this. If inflation comes in above expectations, rates may need to rise further. She also left open the other possibility: the policy path would need to respond if the labor market deteriorates significantly.
Neither of these scenarios has materialized yet.
🏛️ 她点的两个条件谁先动，先发群里，进来对着看
That interpretation could be turned on its head when businesses can no longer stop passing on higher costs. The risk Hammack highlighted is rising input costs for businesses and more companies passing price increases on to consumers. The biggest concern, she said, is that households and businesses are becoming more accepting of higher inflation; there are already some signs of this. If inflation comes in above expectations, rates may need to rise further. She also left open the other possibility: the policy path would need to respond if the labor market deteriorates significantly.
Neither of these scenarios has materialized yet.