US Fed keeps rates unchanged, but with 3 dissents – Who called for a hike?

The Federal Open Market Committee (FOMC) voted 9-3 to leave rates unchanged. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan dissented, saying they preferred an immediate quarter percentage point increase.

When asked about the three dissenting votes, Federal Reserve Chair Kevin Warsh said he welcomed the debate, calling it as the “good family fight” he had hoped for in the press conference

“That’s the purpose … I come into this meeting, even this press conference, heartened by what I’ve experienced the last two days. Most of our discussion were on the big questions that matter to the conduct of monetary policy,” Warsh said, adding that “it was a real family fight.”

“It was an active, robust discussion about what’s in the full range of what we can do and might want to do in the period ahead.”

Warsh noted that even before becoming Fed chair, he believed “messier” meetings, where policymakers openly debated their differences, would lead to better monetary policy outcomes.

The Fed said the economy continues to expand at a solid pace, the labour market remains stable and inflation is still above its 2% target. Policymakers also pointed to uncertainty linked to the conflict in the Middle East, which has added to inflation pressures through higher energy prices.

The three dissenters have all expressed concerns in recent months that inflation remains too high and that keeping policy unchanged could slow progress toward the Fed’s inflation goal.

Beth Hammack

Beth Hammack became president and CEO of the Cleveland Federal Reserve Bank in August 2024 and is serving as a voting FOMC member in 2026. Before joining the Fed, she spent more than 30 years at Goldman Sachs, where she held several senior leadership roles, including co-head of the Global Financing Group.

Hammack has been one of the committee’s more hawkish members. She has repeatedly said inflation continues to put pressure on households and has questioned the need for lower interest rates. At this meeting, she voted for a 25 basis point rate increase, arguing inflation has remained above the Fed’s 2% target for more than five years.

Neel Kashkari

Neel Kashkari has led the Minneapolis Federal Reserve Bank since 2016. He previously worked at Goldman Sachs, served at the US Treasury during the 2008 financial crisis, and later joined investment firm PIMCO.

Kashkari has shifted between supporting easier and tighter policy over the years, depending on economic conditions. More recently, he has taken a tougher stance on inflation and backed a quarter percentage point rate hike, saying current policy has not done enough to bring inflation back to the Fed’s target.

Lorie Logan

Lorie Logan has been president and CEO of the Dallas Federal Reserve Bank since 2022. She spent more than two decades at the New York Fed, where she oversaw market operations and helped manage the central bank’s securities portfolio

Logan has been among the strongest supporters of higher interest rates in recent months. She has argued that modestly higher rates may be needed to control inflation. On Wednesday, she joined Hammack and Kashkari in voting for a 25 basis point increase instead of keeping rates unchanged.