3 Fed Dissenters Backed Rate Hike as Inflation Nears 4%
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- Three Fed dissenters backed an interest rate increase this week, warning that high inflation will become entrenched in the economy unless the central bank acts more decisively
- The Federal Reserve voted 9-3 on Wednesday to leave its key U.S. interest rate unchanged
- U.S. inflation is running close to 4%, almost double the Fed's 2% goal
- Inflation has strayed above the Fed's 2% target for more than five years
- Cleveland Fed President Beth Hammack has been a strong supporter of raising rates to tame high inflation
Why it matters: A 9-3 split on a hold vote is an unusually wide fracture for the FOMC, and with inflation near 4% for five-plus years, the three dissenters are signaling that the Fed's patience itself now carries an entrenched-inflation risk — putting greater pressure on the next rate decision.
