Three Federal Reserve policymakers said their dissenting votes for a rate
increase this week were driven by persistent inflation, increasing internal
hawkish pressure on Fed Chair Kevin Warsh. In a Friday statement, Hamak and
Kashkari said they worry that while recent price gains may partly reflect
President Trump’s tariffs and the Iran conflict, inflation now warrants Fed
action. Logan joined, saying even if inflation cools it is unlikely to return
fully to the Fed’s 2% target without tighter policy; absent policy restraint
inflation could remain above target until an external shock. Kashkari said he
may support a series of rate hikes rather than a single increase to prevent
inflation from becoming entrenched. Hamak warned that without policy tightening
price growth could accelerate and said she lacks confidence inflation will
revert to 2% on its own after running above target for more than five years.
