Fed’s Hammack: Prefers Smaller, Steadier Rate Moves

Hammack's preference for smaller, steadier moves signals a bias toward gradualism over abrupt pivots, which matters for rate-sensitive corners of crypto and tokenized RWAs that trade off the broader cost-of-money outlook. Her caveat about falling behind the curve cuts the other way: gradualism holds only while officials believe policy is roughly in the right place, so the emphasis on smaller steps is also a claim about where the Fed thinks it stands. The open question is whether other officials echo that framing or lean toward the larger action she flagged as a risk.