The catalyst
Fed's Hammack Says Broad-Based Inflation, Ongoing Growth Need Restrictive Monetary Policy; Trend Inflation Currently In The Mid-To-High 2% Range, Expect It Will Take Some Time To Return To 2% Target Even With Appropriate Monetary Policy; Wo
The thesis
Fed's Hammack said broad-based inflation and ongoing growth require restrictive monetary policy, with trend inflation still in the mid-to-high 2% range and a return to the 2% target expected to take time. She favors smaller but relatively quick rate adjustments. The remarks create a clear macro catalyst for SPY.