In remarks at the 2026 US Monetary Policy Forum in New York City, Federal Reserve Bank of Cleveland President and CEO Beth Hammack set out her view that the US dollar’s international role rests on the rule of law, deep and liquid capital markets, and an independent central bank. She also said her base case is that monetary policy should remain on hold “for quite some time” as inflation comes down and the labour market stabilises further, while emphasising “two-sided risks to rates.” Hammack argued that Federal Reserve independence, alongside accountability to Congress, is critical to global confidence in the Fed’s commitment to 2 percent inflation, and that delivering on those commitments supports the dollar as a reliable store of value. She illustrated safe-haven dynamics with an anecdote from the 2011 Standard & Poor’s downgrade of US sovereign debt, noting that Treasury prices rallied despite equity declines, and that while the dollar fell against the yen and Swiss franc, the broad trade-weighted dollar index rose.
Federal Reserve Bank of Cleveland 2026-03-06
Federal Reserve Bank of Cleveland’s Hammack signals policy on hold for some time and ties dollar safe-haven status to Fed independence
Federal Reserve Bank of Cleveland President Beth Hammack emphasized at the 2026 US Monetary Policy Forum that the US dollar's international role is supported by the rule of law, deep capital markets, and an independent central bank. She suggested maintaining current monetary policy as inflation decreases and the labor market stabilizes, while acknowledging "two-sided risks to rates." Hammack highlighted the importance of Federal Reserve independence and accountability to Congress in maintaining global confidence and supporting the dollar.