{"id":439885,"date":"2026-10-13T00:50:08","date_gmt":"2026-10-12T17:50:08","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/feds-hammack-treasury-rates-are-modest-by-historical-standards-439885\/"},"modified":"2026-10-13T00:50:08","modified_gmt":"2026-10-12T17:50:08","slug":"feds-hammack-treasury-rates-are-modest-by-historical-standards","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/feds-hammack-treasury-rates-are-modest-by-historical-standards-439885\/","title":{"rendered":"Fed\u2019s Hammack: Treasury rates are \u201cmodest\u201d by historical standards"},"content":{"rendered":"<div>\n<p>Comments from the Fed\u2019s Hammack cross the wires:<\/p>\n<ul>\n<li>Treasury rates right now are \u201cmodest\u201d by historic standards.<\/li>\n<li>If the economy were to return to a 3% home mortgage it would likely mean something had gone wrong in the economy.<\/li>\n<li>The neutral rate is likely higher but it is hard to pin down.<\/li>\n<li>Hearing \u201cearly warning signs\u201d of a possible problem with inflation expectations.<\/li>\n<li>Need to \u201ccool the economy at the margins.\u201d<\/li>\n<li>Higher interest rates won\u2019t dissuade hyperscalers, but might influence firms in other industries.<\/li>\n<li>The question for the Fed now is how fast to make policy more restrictive.<\/li>\n<li>Don\u2019t want to threaten the jobs side of the Fed\u2019s mandate.<\/li>\n<li>There is more restraint that is needed; if monetary policy does nothing market conditions would change.<\/li>\n<li>Comments from low income workers was first about trading down, now they are beginning to juggle what bills to pay.<\/li>\n<\/ul>\n<p>Analysis: The message is hawkish. Hammack is framing the debate around how quickly to make policy more restrictive. Her concern about inflation expectations is key. If households and businesses begin to expect persistently higher inflation, bringing inflation back down could become more difficult.<\/p>\n<p>However, she also recognizes the balancing act. Lower-income workers are struggling to pay bills, and she does not want to threaten jobs. For traders, the comments lean toward tighter policy, but leave the pace unresolved. Her view that the neutral rate is likely higher also suggests that today\u2019s rates may provide less restraint than their level alone would imply.<\/p>\n<p>                            This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Comments from the Fed\u2019s Hammack cross the wires: Treasury rates right now are \u201cmodest\u201d by historic standards. If the economy were to return to a 3% home mortgage it would likely mean&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-439885","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/439885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=439885"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/439885\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=439885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=439885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=439885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}