Fed's Hammack: Keeping the Fed policy restrictive will help bring inflation down

Federal Reserve (Fed) Bank of Cleveland President Beth Hammack said late Thursday that keeping the Fed policy restrictive will help bring inflation down.

Key quotes

Keeping the Fed policy restrictive will help bring inflation down.

My contacts suggest that the job market remains in a low-hiring, low-firing environment.

I do not believe the current economic data warrants an interest rate hike.

The economy has been resilient in the face of uncertainty.

Job market has softened of late but has been around full employment.

Expects economy will pick up next year after soft 4Q.

Expects economy 'to do well' next year.

Tariffs are driving up inflation but impact will fade next year.

Expects a continued gradual cooling in job market with downside risks.

Sees upside risks to inflation.

Uncertainty around tariffs have weighed on companies.

Companies closer to consumers have limited tariff pass through.

Fed's two mandates are somewhat in tension.

Longer term inflation expectations have been anchored.

Is committed to keeping inflation expectations anchored.

Government deficits on unsustainable path.

Market reaction

At the time of writing, the US dollar Index (DXY) is trading around 99.70, down 0.46% on the day.