Fed officials who voted to hike rates say action is needed now against inflation
Three officials broke with the majority, saying a quarter-point increase is needed to curb inflation as Kevin Warsh gives investors less policy 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.
49 Articles
49 Articles
fredericksburg.com
Three Federal Reserve dissenters voice worries
Three Federal Reserve officials who dissented at this week's policy meeting in favor of an interest rate hike expressed concern Friday that without an immediate increase in shortterm borrowing costs inflation will stay stuck above the Fed's 2% target, where…
Some heads of the US Federal Reserve pointed to the risk of high inflation becoming permanent and that the current policy stance was not restrictive enough. They then announced that they voted in favor of raising interest rates.
Fed dissenters warn inflation could become entrenched without monetary policy tightening now
The Federal Reserve left its benchmark interest rate unchanged this week despite three dissenting votes from Fed governors who would've preferred the central bank hike rates to help rein in stubbornly-high inflation, they explained on Friday.The Federal Open Market Committee (FOMC), the Fed panel responsible for monetary policy moves, on Wednesday voted 9-3 to leave the federal funds rate unchanged at a range of 3.5% to 3.75%, where it has remai…
(New York = Yonhap News) Correspondent Kim Yeon-sook = The three Fed members who voted against the decision to keep the benchmark interest rate unchanged at the recent U.S. Federal Reserve monetary policy meeting...
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