Fed Policymakers Call for Rate Hikes as Sustained Inflation Persists

The US Federal Reserve's recent decision to keep interest rates steady has sparked dissent among three of its policymakers. They argue that rate hikes are necessary to combat sustained inflation, which has been above target for over five years.

Inflation has been a major concern in the US, with prices increasing due to the war on Iran and energy costs bleeding into other products. The dissenter's views were shared by Beth Hammack, president of the Cleveland Fed, who stated that 'the longer that high inflation persists, the more challenging and costly it can be to bring it back down.'

Neel Kashkari, president of the Minneapolis Fed, also expressed his concerns, suggesting that small policy moves would be better than waiting and potentially requiring bolder actions later.