Federal Reserve Chairman Kevin Warsh faced growing internal divisions at his second meeting, as three policymakers voted against the decision to hold interest rates steady and argued for an immediate increase to combat inflation.
Neel Kashkari and Beth Hammack joined Dallas Fed President Lorie Logan in dissenting, saying that action is needed now rather than waiting. Their opposition signals deepening disagreement within the central bank over how aggressively to respond to price pressures.
The majority of Fed officials chose to keep the key overnight borrowing rate unchanged, but the dissents highlight a rift over the pace of monetary policy. Warsh, who took the helm recently, now must manage a committee increasingly split between those who want to hike rates and those who prefer to hold steady.