Fed’s Hammack: Policy Will Need to Turn Restrictive

Hammack's call for a restrictive turn, paired with a preference for frequent small adjustments, signals a Fed leaning toward incremental tightening rather than a single decisive move — a pace that keeps policy uncertainty elevated for rate-sensitive assets, including tokenized Treasuries and other yield-bearing RWA products. Her admission that inflation has moved the wrong way since March is the substantive shift here, since it undercuts the disinflation narrative markets had been pricing. The dollar commentary is a quieter but notable thread: a reserve-share peak, if real, touches the long-run case for dollar-denominated settlement in on-chain markets. Whether other Fed voices echo the restrictive framing is the open question.