3 Fed dissenters pressed for a rate hike as inflation stayed hot
What's new: Cleveland's Beth Hammack and Minneapolis' Neel Kashkari argued small increases now could avoid sharper tightening later.
Three Federal Reserve officials who broke with this week's decision to hold rates steady laid out their case Friday for raising borrowing costs now, arguing inflation remains too persistent. Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari said earlier action would help return PCE inflation to the Fed's 2% target, while Dallas Fed President Lorie Logan warned monetary policy is not restraining the economy. The Fed kept its benchmark rate at 3.5% to 3.75%, with nine voting members backing the pause. Inflation has stayed above target for more than five years and has been pushed higher this year by energy costs, the Iran war and tariffs imposed by President Donald Trump.