Fed’s Hammack Touts Hawkish Stance on Rates, Questions CPI Drop
Meanwhile, Cleveland Fed President Beth Hammack has taken a hawkish stance on interest rates, questioning the recent CPI drop.
However, Hammack believes that the current fed funds rate range is “a little bit below” the neutral rate, indicating that she thinks current policy is at least somewhat stimulative.
Consequently, this could lead to a massive delta between Hammack’s views and those of other policy-setters, including current Fed Governor Chris Waller.
Hammack’s Views on Interest Rates
Moreover, Hammack’s views on interest rates are at odds with those of other Fed officials, including Waller, who believes that the current rate range is 50 to 100 basis points above the neutral level.
Therefore, Hammack’s hawkish stance on rates could lead to a more restrictive monetary policy, which could have significant implications for the economy.
In addition, Hammack’s views on interest rates are likely to influence the Fed’s policy decisions in 2026, when she will be a voter on the central bank’s policy-making FOMC.
Implications for Bitcoin and Other Assets
However, Hammack’s views on interest rates are not necessarily good news for bitcoin and other risk assets, which tend to benefit from easier monetary policy.
Therefore, the recent CPI drop and Hammack’s hawkish stance on rates could lead to a more challenging environment for bitcoin and other risk assets.
Meanwhile, the Fed’s policy decisions in 2026 will have significant implications for the economy and financial markets.
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