FED'S HAMMACK BACKS SMALLER, STEADIER RATE HIKES

Cleveland Fed President Beth Hammack said her business contacts describe conditions as "generally strong to booming," yet in an October 12 speech she still argued the Fed should raise rates in smaller, more frequent steps instead of big moves. Hammack said the recent surge in Treasury yields has only pushed financial conditions to neutral, not restrictive, and warned that AI-driven investment demand "is not self-correcting," likely requiring tighter policy to rein it in. Bonds like $TLT remain exposed to that stance, with the Fed's benchmark rate at 3.75%-4% heading into the October 28 decision.