Fed dissenters argue for early rate hikes to combat stubborn inflation

Seven Fed policymakers split on the decision to hold rates, with Beth Hammack and Neel Kashkari arguing for small, preemptive hikes now to prevent inflation from entrenching, and Dallas Fed’s Lorie Logan dissenting as well. The majority voted to hold the federal funds rate at 3.5%–3.75%. Inflation remains above the 2% goal amid a mix of demand- and supply-driven pressures, energy costs, and tariffs, fueling a debate over whether gradual tightening now can avert larger moves later and how policymakers should respond to evolving conditions.