Fed Officials Argue for Interest Rate Hike to Combat High Inflation

Several Federal Reserve officials who voted against keeping interest rates steady this week say that hiking now is necessary to combat inflation.

Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari joined Dallas Fed President Lorie Logan in dissenting against holding the Fed's key overnight borrowing rate in a range between 3.5%-3.75%.

Hammack said that 'now is the time for the [Federal Open Market Committee] to act to speed the return of PCE inflation to our 2 percent objective and deliver on our commitment to price stability for the American people.'

Kashkari believes small hikes now can prevent the need for larger moves later, saying 'a potential series of small policy moves would be better than waiting and eventually concluding that even bolder actions were necessary.'