Fed Officials Warn Interest Rates Must Rise Amid Rising Inflation

The Federal Reserve's decision to keep interest rates steady has sparked dissent from some of its officials. Three members, Fed presidents Beth Hammack of Cleveland, Neel Kashkari of Minneapolis, and Lorie Logan of Dallas, dissented in favor of raising rates by a quarter point.

In their statements, the officials cited rising inflation pressures as a pressing concern. The current level of borrowing costs is not keeping growth and inflation in check, Logan said. She added that labor, consumption, and financial market conditions indicate that monetary policy is not restraining the economy.

The officials also pointed out that the scale had tipped too far to one side - the inflation side. Hammack noted that the stability of the labor market with an unemployment rate near maximum employment makes high inflation the more pressing problem.