Fed officials who voted to hike rates say action is needed now against inflation

Three Federal Reserve officials dissented against this week's decision to hold rates steady, publicly calling Friday for immediate hikes to combat inflation. Minneapolis Fed President Neel Kashkari, Cleveland Fed President Beth Hammack, and Dallas Fed President Lorie Logan broke with the majority, signaling renewed hawkish pressure within the FOMC.

The trio argues current policy settings aren't restrictive enough to anchor inflation expectations. Their dissent marks a rare split at a time when markets had priced in a dovish pivot, with the Fed's key overnight borrowing rate held steady at its current range.

Kashkari emphasized the case for acting "now" rather than waiting for inflation data to worsen, while Logan has previously warned that premature easing could reignite price pressures. The dissents suggest the Fed's internal consensus on the terminal rate is fracturing, potentially extending the higher-for-longer regime beyond current market expectations.

The hawkish stance comes as traders had begun pricing in rate cuts later this year. The public pushback from three regional presidents signals that any shift toward accommodation faces meaningful internal resistance.