Three members of the Federal Open Market Committee, Beth Hammack, Neel Kashkari and Lorie Logan, dissented at the July meeting, advocating for a 25-basis-point interest rate hike. They argue that the current federal funds target range of 3.50%-3.75% may be insufficient to bring inflation back to the Fed’s 2% target. Market pricing assigns a 22.5% probability to a rate hike in October 2026, down from 32% a week ago, with 68.5% odds favoring no change. These dissents highlight a significant minority within the Fed who see the need for a more restrictive monetary policy.
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