US Fed officials Balkin and Hammack back gradual rate rises to curb inflation
Two US Federal Reserve presidents, Balkin and Hammack, support gradual interest rate increases to address persistent inflation above the 2% target, citing strong demand and low unemployment. Hammack also notes dollar reserve share may have peaked but remains dominant, while cryptocurrencies are not
Two regional Federal Reserve presidents have voiced support for gradual interest rate increases to tackle persistent inflation in the United States, according to a report by Hong Kong-based RTHK on 6 November 2026.
Richmond Federal Reserve Bank President Thomas Balkin said demand remains strong, unemployment is low and price pressures are widespread, with inflation continuing to exceed the Fed's 2 per cent target. He argued in favour of a gradual approach to raising interest rates.
Cleveland Federal Reserve Bank President Loretta Hammack also endorsed gradual rate hikes, saying they would help reduce the risk of policy falling behind where it should be, which could cause inflation expectations to become entrenched. She said further policy tightening is needed to bring inflation back to target in a timely manner. Hammack added that more frequent but smaller interest rate adjustments would have a smaller impact on households, businesses and financial markets.
Separately, Hammack commented on the US dollar's role in global foreign-exchange reserves. She said the dollar's share may have peaked, but she does not believe it will lose its dominant status. She also said cryptocurrencies currently do not appear to have the conditions to replace the dollar, as their prices are highly volatile and they offer less certainty as a store of value than the US currency.
The remarks by Balkin and Hammack come as the Fed continues to monitor inflation data and labour market conditions. No specific timeline for any rate changes was mentioned in the report.