Cleveland Federal Reserve President Beth M. Hammack said benchmark interest rates must move into restrictive territory because inflation remains above the central bank’s 2% goal. In prepared remarks at the SNB and Its Watchers Conference in Zurich on November 5, 2026, she favored measured, frequent increases over delayed tightening that could require more disruptive action. Hammack, who dissented with one other official when the Federal Open Market Committee paused rate increases the previous week, cited September headline and core PCE inflation of 3.6% and 3.1%, respectively, after six years of elevated readings. She also said dollar-backed payment stablecoins, including those used by AI agents through smart contracts and agentic workflows, could reinforce the dollar’s global role by supporting demand for short-term U.S. government debt. However, she questioned whether the GENIUS Act would significantly increase worldwide or overseas dollar demand and said differing redemption access could divide the market between compliant U.S. tokens and overseas alternatives. Investors are pricing possible rate increases in December and early 2027.