Two Federal Reserve officials who dissented against the recent decision to hold interest rates steady are now publicly advocating for an immediate rate increase to combat persistent inflation.
The comments, made on Friday, signal a hardening stance within the central bank as policymakers debate the trajectory of monetary policy.
The dissenters, identified as Hammack and Kashkari, expressed their preference for acting with urgency.
While both agree on the need for tighter policy, their approaches differ: Hammack favors an immediate hike, whereas Kashkari supports a more gradual tightening path.
This public divergence adds to the uncertainty surrounding the Fed's next move, as markets had largely priced in a continuation of the current pause.
The internal split reflects growing anxiety over inflation dynamics.