Fed Officials Break Ranks on Interest Rates

Fed officials are speaking out on interest rates, despite Chairman Kevin Warsh's preference for keeping plans close to his vest. Forward guidance is a term used to describe Fed comments about future rate hikes or holds.

Last week, the Federal Reserve raised interest rates, and some officials have since weighed in. Jeff Schmid, president of the Federal Reserve of Kansas City, said the Fed has work to do on inflation. On Wednesday, Fed Governor Michael Barr stated that inflation is above their 2% target and not clearly trending toward target.

Several other officials chimed in on Thursday, including John Williams, who thinks another rate hike may be appropriate by year's end. Oren Klachkin expects two more rate increases this year due to ongoing supply-side shocks that are lasting longer than expected.