The Fed Just Declared War On Inflation

The Federal Reserve voted 9-3 to hold interest rates steady at 3.5%–3.75% on Wednesday, marking the fifth consecutive meeting without a policy change. But the headline wasn't the hold it was the fight inside the room. Three Fed officials Beth Hammack of the Cleveland Fed, Neel Kashkari of the Minneapolis Fed, and Lorie Logan of the Dallas Fed dissented in favor of a 25-basis-point rate hike. That's the most dissents in one direction since September 2016. Fed Chair Kevin Warsh addressed the rare split directly at his press conference: "I asked for a good family fight, and I got one." On inflation, Warsh was unambiguous. After more than five years of prices running above the Fed's 2% target, he pushed back on calls for urgency: "Five-plus years of inflation above target cannot be cured in nine weeks." He described the current moment as "a period of watchful thinking" not watchful waiting and was explicit that there is no soft inflation target: only 2%. Markets are now pricing roughly an 80% chance of a rate hike at the September meeting. Jackson Hole in late August could be the next major signal from Warsh. --- #FederalReserve #KevinWarsh #InterestRates 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.