Beth Hamack: Restrictive monetary policy is needed, with a tendency towards small and frequent adjustments to interest rates

In 2026, FOMC voting committee and Cleveland Fed Chair Beth Hammack stated that adopting a restrictive monetary policy stance is appropriate based on current economic conditions, forecasts, and inflation risks to ensure inflation returns to the 2% target. Beth Hamack stated that the overall financial situation is neutral and has not suppressed demand, and the economy can withstand tighter policies; The risk of inflation falling for a longer period of time can be reduced through more frequent and smaller adjustments. If there are obvious signs of deterioration in the labor market, the policy path needs to respond; If inflation is higher than expected, interest rates need to be raised. (Source: Cleveland Fed)