Neel Kashkari, a member of the Federal Reserve’s Federal Open Market Committee, dissented from the majority at the recent meeting, advocating for a 25 basis point increase in the federal funds rate instead of holding steady. The Fed kept rates in the 3.50% to 3.75% range, with the decision approved by a 9-3 vote. Kashkari cited supply shocks as a contributing factor to ongoing inflation levels that remain above the central bank’s 2% target. This policy divide within the committee reflects a broader debate over the necessity of tighter monetary policy to address supply-driven inflation. Markets are now pricing in increased speculation for a potential 25 basis point hike at the upcoming FOMC meeting in October 2026.
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