Fed Dissenters Call for Rate Hikes Amid Sustained Inflation

Two US Federal Reserve policymakers, Beth Hammack and Neel Kashkari, dissented from the central bank's decision to keep interest rates steady at 3.5% to 3.75% on July 29.

The dissenters called for rate hikes to avoid entrenched inflation, which has been above target for over five years.

Inflation spiked to three-year highs due to President Donald Trump's war on Iran since March and skyrocketing energy prices.

New Fed chairman Kevin Warsh, who expressed support for lowering interest rates before taking office, has said he is committed to the 2% inflation target but provided no details on how to achieve it.

The market reacted with concern to Warsh's tightlipped policy, with 30-year Treasury bond yields rising to their highest levels since 2007.