A hawkish Fed holds rates steady amid rising inflation - The Real Economy Blog

The Federal Open Market Committee kept its policy rate in a range between 3.75% and 4% on Wednesday as it opted for the status quo days before the midterm elections. While Fed Chair Kevin Warsh dislikes forward guidance, the two dissents in the FOMC vote, from Fed Governor Lisa Cook and Cleveland Fed Beth Hammack, tell us that there is a growing faction on the FOMC—we think a majority—that is ready to hike rates in December and again in March to put inflation on the road back to price stability. Get Joe Brusuelas’s Market Minute commentary every morning. Subscribe now . Those dissents to a certain extent set the predicate for a form of forward guidance from the FOMC board and the regional presidents.