Warsh Faces Unprecedented Dissent at Second FOMC Meeting

A rare display of dissent at the Federal Reserve emerged as three members of the Federal Open Market Committee (FOMC) opposed the decision to keep interest rates unchanged during Kevin Warsh's second meeting as chair. This development is noteworthy, as no Fed chair since the 1970s has faced such widespread opposition so early in their tenure.

The FOMC records kept at the Federal Reserve Bank of St. Louis show that three votes opposed Arthur Burns' first decision in February 1970. Paul Volcker, during his first meeting, faced opposition from two members, and by the second meeting this number had risen to four.

In contrast, most Fed chairs after 1970 have operated largely in a consensus mode. However, Jerome Powell's transitional tenure was different: his predecessor avoided consensus at the outset, only at the 11th meeting after the term began did the first dissent vote appear.