Fed voter Hammack: Need to shift to a restrictive stance, favors small, more frequent rate adjustments.

PANews October 13 news, according to the Federal Reserve Bank of Cleveland's official website, 2026 FOMC voting member and Cleveland Fed President Beth Hammack said in a speech at the National Association for Business Economics annual meeting that, based on current economic conditions, forecasts, and inflation risks, maintaining a restrictive monetary policy stance is appropriate to ensure inflation returns to the 2% target in a timely manner. She said that although U.S. Treasury yields have risen noticeably recently, financial conditions are overall neutral and have not restrained demand, and the economy can withstand tighter policy; by "trimming the sails" through more frequent and smaller adjustments, the risk of inflation psychology becoming entrenched and inflation taking longer to decline can be reduced. Hammack also said that if the labor market shows clear signs of deterioration, the policy path may need to respond; if inflation is higher than expected, interest rates may need to be raised further.