Fed’s Hammack: We need to move to restrictive mon pol to lower inflation

  • Worries economy could form inflationary mindset
  • There are real demadn presures contributing to high inflation
  • Fed has been missing on inflation mandate for years
  • Fed is doing very well on the jobs side of the mandate

Hammack has consistently been one of the most-hawkish members of the current Fed. She dissented in favor of a hike in July.

Right now, the market is pricing in 28 bps in hikes for December as it mulls the idea of a 50 bps hike. For the year ahead, there are 83 bps priced in. Today US 2 year yields are up 9 bps to 4.82%, while 10-year yields are up to 5.05%. That momentum has spilled over to FX where the US dollar is largely flat on the day.

This article was written by Adam Button at investinglive.com.

Leave a Reply