Beth Hammack, president and chief executive officer of the Federal Reserve Bank of Cleveland, during a research conference at the Federal Reserve Bank of Dallas in Dallas, Texas, US, on Friday, Oct. 31, 2025.
Desiree Rios | Bloomberg | Getty Images
Federal Reserve officials who voted this week against the decision to hold interest rates steady said Friday they favor hiking now as a way to stave off inflation.
“In my view, now is the time for the [Federal Open Market Committee] to act to speed the return of PCE inflation to our 2 percent objective and deliver on our commitment to price stability for the American people,” Cleveland Fed President Beth Hammack said in a statement. “The longer that high inflation persists, the more challenging and costly it can be to bring it back down.”
Similarly, Minneapolis Fed President Neel Kashkari said he believes small hikes now can prevent the need for larger moves later.
“In my view, a potential series of small policy moves would be better than waiting and eventually concluding that even bolder actions were necessary,” he said.
Kashkari and Hammack joined Dallas Fed President Lorie Logan in dissenting against holding the Fed’s key overnight borrowing rate in a range between 3.5%-3.75%. The other nine voting members of the FOMC voted in favor of keeping the rate steady, where it has been all year following a series of three cuts in the latter part of 2025.
Inflation has held above the Fed’s 2% target for more than five years, spiking again this war following the Iran war and the impact of President Donald Trump’s tariffs.
Though price increases eased in June as Middle East tensions briefly eased, energy costs again have risen and generated fears that the Fed will have to tighten.
Though he voted in favor of the hold, Fed Chairman Kevin Warsh said he remains resolute in getting inflation back to target.
“We have begun a new chapter, and we understand that the five-plus years of inflation above target cannot be cured in nine weeks — or by a single month of modest price decreases,” he said.
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