Cleveland Fed President Beth Hammack is sounding decidedly hawkish on monetary policy

Cleveland Fed President Beth Hammack is sounding decidedly hawkish on monetary policy, arguing that the Fed’s current policy stance is not restrictive enough while inflation remains too high.Hammack says feedback from her local business contacts suggests the time has come for the Fed to raise interest rates to help bring inflation back under control.The comments reinforce the idea that the Fed may need to tighten policy further if inflation remains elevated. For traders, the message is potentially supportive of the US dollar and US yields, while creating a headwind for stocks. However, the ultimate market reaction will still depend on whether incoming inflation and employment data support her view.Hammack’s comments:Fed policy is not restrictive, and inflation remains too high.Local contacts indicate that now is the time for the Fed to raise rates to control inflation.Hammacks comments are congruent with others she made recentlyhttps://investinglive.com/central-banks/fed-s-hammack-it-s-time-to-act-with-rate-hikes-waiting-will-create-pain/ This article was written by Greg Michalowski at investinglive.com.