EL7.AI
Central BanksMedium•12 November 2026•
1 min read

Fed's Hammack Advocates Restrictive Policy to Combat Inflation

Key Facts

1Fed's Hammack stated the need to move to a restrictive monetary policy to lower inflation.
2Hammack expressed concerns that the economy could form an inflationary mindset due to real demand pressures.
3US 2-year yields rose to 4.82% and 10-year yields to 5.05% alongside these comments.

Federal Reserve official Hammack stated the need to move to a restrictive monetary policy to lower inflation. Reuters reported that Hammack expressed concerns regarding the formation of an inflationary mindset in the economy due to real demand pressures, noting that the Fed has missed its inflation mandate for years despite strong employment performance.

US Treasury yields rose alongside these comments, with the 2-year yield reaching 4.82% and the 10-year yield hitting 5.05% on November 12, 2026. This hawkish sentiment follows data from November 10, 2026, showing the Super Core CPI YoY at 3.1%, while initial jobless claims were reported at 200,000 for the week ending November 12, 2026.

The market is looking ahead to the release of the monthly Producer Price Index on November 13, 2026, with a forecast of 0.4%, followed by a scheduled speech from Fed's Bowman later that day.