Cleveland Fed President Beth Hammack Urges Restrictive Monetary Policy
Beth Hammack advocates for gradual interest rate hikes to reach a 2% inflation target and defends the U.S. dollar's global reserve status.
Cleveland Federal Reserve President Beth Hammack stated on Thursday that the U.S. central bank must adopt a more restrictive monetary policy to bring inflation down to its 2% target. Speaking in Zurich, Hammack advocated for a strategy of more frequent but smaller interest rate hikes to prevent an inflationary mindset while minimizing disruption to financial markets and households.
Hammack's position follows a recent Federal Reserve decision to maintain benchmark interest rates between 3.75% and 4.00%, a move she dissented against last week.
During her address, Hammack also defended the U.S. dollar's role as the primary global reserve currency, attributing its dominance to the strength of U.S. institutions and the legal system. She dismissed the immediate threat posed by cryptocurrencies to the dollar, citing the high price volatility of digital assets.
