Federal Reserve mouthpiece Nick Timiraos published an article: Fed official Hammack favors a "smaller, more frequent" rate hike strategy to avoid being forced into larger hikes in the future.

At Jergens, an industrial hardware manufacturer in Cleveland, Beth Hammack learned that price had fallen to third place on customers' list of priorities, behind quality and delivery speed. Admittedly, raising rates can neither open the Strait of Hormuz nor immediately cool the data center construction boom. But higher rates might make other businesses think twice about expansion plans in the current environment, thereby leaving scarce components or supplies for the data center sector and easing supply-demand pressure at the margin. She favors a "smaller, more frequent" approach to rate hikes to avoid being forced into larger increases later. Her estimate of the neutral rate ranks among the highest among Fed officials, and she said that if her estimate is wrong, it can only be too low. In addition, she stressed that rising yields are "absolutely no" substitute for Fed rate hikes.