FED Members Push for Interest Rate Hikes Amid Persistent Inflation Concerns

The US Federal Reserve's (FED) July decision to keep the policy interest rate unchanged has been met with opposition from some FED members, who advocate for an increase. Cleveland Fed President Beth Hammack expressed her support for a hike in interest rates, citing high inflation as a major concern.

Hammack warned that prolonged high inflation could necessitate harsher interest rate hikes in the future, stating, 'The longer high inflation persists, the harder and more costly it can become to bring it down.'

Minneapolis Fed President Neel Kashkari also supported the interest rate increase, highlighting the risk of inflation becoming permanent. He argued that gradual tightening of monetary policy would help manage this risk.

Dallas Fed President Lorie Logan echoed similar sentiments, emphasizing the need for early action to address high inflation through interest rate increases.