Fed’s Hammack calls for more restrictive monetary policy amid inflation concerns

Cleveland Fed President Beth Hammack called for more restrictive monetary policy amid ongoing inflation concerns. She signaled that tighter conditions may be needed, a stance that could raise borrowing costs and weigh on investment and consumer spending. The comments matter for risk assets, including crypto, because tighter policy tends to reduce liquidity and pressure valuations. Traders will watch incoming inflation data and Fed communications for confirmation of how far rates may need to rise or stay elevated.