Several Fed officials have sent hawkish signals, advocating frequent, modest rate hikes to combat persistently above-target inflation. Cleveland Fed President Beth Hammack has spoken out again, stressing that monetary policy needs to remain restrictive and bring inflation back to the 2% target in a timely manner.

She noted that inflation has been above target for nearly six consecutive years, with broad-based price pressures driven by both supply and demand factors. As an official who dissented at the latest policy meeting, she favors more frequent, smaller rate hikes to avoid falling behind and prevent inflation expectations from becoming entrenched. Richmond Fed President Tom Barkin also supports gradual rate hikes, but did not comment on the eventual peak in interest rates.

Futures market pricing indicates that investors expect the Federal Reserve to raise rates once in December and once again next March.

Hammack also commented on employment: the U.S. labor market is showing signs of moderate strengthening, and resilient employment supports keeping interest rates restrictive, leaving limited room for rate cuts in the near term.

On the dollar, she emphasized that central bank independence, the rule of law, and the liquidity of dollar assets together underpin the dollar’s dominant position. The Fed formulates policy based on data and safeguards its institutional credibility. Her remarks came as the U.S. election results were announced, with Democrats winning both chambers of Congress—easing concerns to some extent that Trump might pressure the Fed.

More noteworthy was her rare take on digital assets: AI could become a key factor in the widespread adoption of stablecoins. If tech giants such as Google and Amazon launch their own tokens, and AI agents use stablecoins for automated trading, this could bring about a substantial transformation in payments. The Fed is currently keeping a close eye on these use cases.

The Federal Reserve also plans to adjust its policy meeting schedule, reducing the number of interest rate meetings from eight to six per year. The remaining two meetings would be dedicated to discussing the broader monetary policy framework. Hammack described the change as a fairly modest adjustment.

A mix of factors—including expectations of prolonged tightening and political shifts—is raising expectations for volatility in the dollar, U.S. stocks, and other risk assets. With frequent, small rate hikes, markets remain pulled in different directions, making a sustained one-way trend unlikely.

Do you think these two rounds of rate hike expectations have already been priced in, or will they continue to weigh on risk assets? And what do you make of this new narrative of AI driving stablecoin adoption? Share your thoughts in the comments 👇#美股走弱，加密货币市场普遍承压 #美联储何时降息？ $NVDAB $BTC $GOOGLB