Fed Dissenters Urge Rate Hike to Curb Stubborn Inflation

The US Federal Reserve's decision to keep interest rates steady has been met with dissent from three of its officials, who believe a rate hike is necessary to curb inflation.

Cleveland Fed President Beth Hammack stated that she 'is not confident it will return to our objective on its own' and believes a higher federal funds rate would help restrain economic activity and reduce inflationary pressures.

Minneapolis Fed President Neel Kashkari also expressed concern about inflation, saying the central bank's policy-setting FOMC should have raised rates as the first in a series of hikes to manage against the risk that high inflation could become entrenched.

Dallas Fed President Lorie Logan stated that she feels the current monetary policy isn't putting any downward pressure on inflation and raising rates by a 'modest' amount 'in the near term could reduce the likelihood of needing to take sharper action later'