Federal Reserve Chairman Kevin Warsh is facing a record level of dissent within the Federal Open Market Committee, with four members expressing disagreement during the latest meeting, the highest number since October 1992. The Fed maintained its benchmark rate at 3.50%-3.75%, but three officials opposed the statement language suggesting future rate cuts, while one member advocated for an immediate 25-basis-point cut. The market now reduces the probability of a rate hike in October 2026 to 22.5%, down from 24% the previous day, and assesses the likelihood of unchanged rates at 63.5%. This surge in disagreements, unseen since the 1960s-1970s, suggests potential instability in monetary policy direction.
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