Cleveland Fed President Beth Hammack stated that adopting a restrictive monetary policy stance is appropriate to ensure inflation returns to the 2% target in a timely manner. Speaking at the National Association for Business Economics annual meeting, the 2026 FOMC voting member argued that financial conditions remain broadly neutral despite rising Treasury yields and have not yet dampened demand. Hammack advocated for "trimming the sails" through more frequent, smaller rate adjustments to reduce the risk of entrenched inflation expectations. She noted that while the economy can withstand tighter policy, the path remains data-dependent; rates may need to rise further if inflation exceeds forecasts, or adjust if the labor market shows clear signs of deterioration.