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ICYMI - Cleveland Fed's Hammack says Fed should already be raising rates, more than one hike needed

ICYMI - Cleveland Fed's Hammack says Fed should already be raising rates, more than one hike needed. Hammack's comments push directly against the dovish repricing that followed Friday's weak July payrolls report, and reintroduce two sided r

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Executive summary

ICYMI - Cleveland Fed's Hammack says Fed should already be raising rates, more than one hike needed. Hammack's comments push directly against the dovish repricing that followed Friday's weak July payrolls report, and reintroduce two sided r

ICYMI - Cleveland Fed's Hammack says Fed should already be raising rates, more than one hike needed

Lead

ICYMI - Cleveland Fed's Hammack says Fed should already be raising rates, more than one hike needed. Hammack's comments push directly against the dovish repricing that followed Friday's weak July payrolls report, and reintroduce two sided r

Context

Hammack's comments push directly against the dovish repricing that followed Friday's weak July payrolls report, and reintroduce two sided risk into a market that had largely settled on the Fed staying on hold. As a sitting FOMC member who dissented in July in favour of a hike, her view carries more weight than a typical regional president's, and her explicit statement that one move would not be enough raises the stakes on Wednesday's core CPI print. If core CPI comes in soft as expected, her hawkish framing may be dismissed as an outlier view, but a hotter print would give her argument real tr…

Conclusion

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