Fed officials who voted to hike rates say action is needed now against inflation
Hammack said a rate hike would help restrain activity as inflation stays above 2% and markets face more uncertainty under new Fed guidance.
- On Wednesday, three Federal Reserve officials voted to raise the federal funds target rate range to 3.5%–3.75%, breaking from the central bank majority who voted to hold rates steady.
- Cleveland Fed President Beth Hammack cited persistent inflation above 2 percent for five years, arguing that "a higher federal funds rate would help restrain economic activity and reduce inflationary pressures."
- Joining the dissent, Minneapolis counterpart Neel Kashkari and Dallas Fed Lorie Logan supported the hike, with Kashkari claiming a "potential series of small policy moves would be better than waiting."
- Chair Kevin Warsh has abandoned detailed forward guidance from the Jerome Powell era, leaving Wall Street facing greater uncertainty about the path of monetary policy.
- Financial markets broadly expect the Fed to lift rates in September, though RWA Wealth Partners' JP Powers told Reuters that "each meeting we're now building more uncertainty around it than the last.
27 Articles
27 Articles
Fed rates dissenters make their case for higher rates
Inflation has been too high for too long, and the Federal Reserve should not count on it fading without further action.That is the argument from the three Fed officials who dissented from the decision led by chairman Kevin Warsh to leave interest rates unchanged this week, preferring instead to raise them.Why it matters: Together, the dissents lay out a blueprint for the Fed's hawkish wing, arguing that repeated supply shocks paired with resilie…
US Fed dissenters call for rate hikes over sustained inflation
The Fed held rates at 3.50-3.75 percent for its fifth straight meeting on Wednesday, with three of the committee's 12 members dissenting in favor of a quarter-percentage-point rate hike. That number of dissents is unusual and illustrative of the challenge the Fed faces in bringing inflation back down to its two-percent target -- a level it hasn't hit in more than five years. "Inflation has been too high for too long," said one of the dissenters…
Fed hawks push yields higher, stocks give back gains
July 31 : Stocks were mixed on Friday, giving back much of their earlier gains, while longer-dated Treasury yields pushed to new multi-year highs, after several Federal Reserve officials argued that further interest rate hikes are needed to combat inflation.Currency markets also stayed on alert for further in
Two Fed dissenters say higher interest rates needed to combat inflation
Two of the three Federal Reserve officials who dissented at this week's policy meeting in favor of an interest rate hike said on Friday that action is needed now to bring inflation back down to the U.S. central bank's 2% target.
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