Fed official Hammack said monetary policy needs to move to a restrictive stance
and he favors frequent, small interest-rate adjustments, arguing gradual hikes
cause less disruption to the economy and financial system. He said inflation
remains too high and is moving in the wrong direction. Hammack said the Fed has
earned credibility through its actions and that central-bank independence is
critical to bring inflation back to 2%. He added the dollar remains the world’s
primary reserve currency, underpinned by US institutions and legal framework,
and it is hard to imagine it losing that role.
