US inflation at 3.6%… Hack, prefers frequent and small rate adjustments

Cleveland Fed President Beth Hammack said in Zurich on September 5 that she prefers adjusting interest rates more frequently and in smaller increments to reach a restrictive policy stance, citing the need to bring inflation back to the Fed's 2% target. In remarks published by the Cleveland Fed, she argued that gradual moves would reduce the shock to households, businesses and financial markets while lowering the risk that delayed policy action lets inflation expectations become entrenched. Hammack, who has previously said policy is not restrictive enough given elevated prices, did not specify the timing or size of the next rate adjustment. Her comments matter because they signal a preference for a slower, steadier tightening path rather than large one-off hikes.