Fed's Hammack: Need to maintain restrictive stance of policy

In an interview with CNBC on Monday, Federal Reserve Bank of Cleveland President Beth Hammack said that they need to maintain a restrictive stance of policy, citing pressure in inflation, especially services.

Key takeaways

"Challenging time for monetary policy."

"Labor market looks broadly in balance."

"We need to maintain a restrictive stance of policy."

"Forecast to remain above inflation target for probably next 1-2 years."

"More difficult to see that tariffs will be a one-time impact."

"Will not get to 2% inflation target until end-2027/early 2028."

"We are mildly restrictive on monetary policy right now."

Market reaction

These comments received a hawkish score of 7.2 from FXStreet Fed Speech Tracker. Nevertheless, the US Dollar (USD) struggles to stay resilient against its peers. At the time of press, the USD Index was down 0.22% on the day at 97.95.